[House Report 114-880]
[From the U.S. Government Publishing Office]


                                                 Union Calendar No. 691

114th Congress   }                                           {   Report
                        HOUSE OF REPRESENTATIVES                 
2d Session       }                                           {   114-880
_______________________________________________________________________

                                     

                                                 


                        REPORT ON THE ACTIVITIES

                                 of the

                      COMMITTEE ON SMALL BUSINESS

                             114TH CONGRESS
                             
                             
                             








 December 20, 2016.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed
            
            
            
            
            
            
            
                                         _________ 
                                  
                             U.S. GOVERNMENT PUBLISHING OFFICE
                             
23-063                               WASHINGTON : 2016       
            
            
            
            
            
            
            
                         LETTER OF TRANSMITTAL

                              ----------                              


                          House of Representatives,
                               Committee on Small Business,
                                 Washington, DC, December 20, 2016.
Hon. Karen L. Haas,
Clerk, House of Representatives,
Washington, DC.
    Dear Ms. Haas: Pursuant to clause 1(d)(3) of rule XI of the 
Rules of the House of Representatives, I present herewith the 
report for the activities of the Committee for the 114th 
Congress, including the Committee's review of legislation 
within its jurisdiction and the oversight activities taken in 
accordance with the oversight plan adopted on February 12, 
2015.
            Sincerely,
                                              Steve Chabot,
                                                          Chairman.
    Enclosure.
    
    
    
    
                               (III)       
    
    
    
    
    
                            C O N T E N T S

                              ----------                              
                                                                   Page
Committee Jurisdiction...........................................     1
Rules of the Committee...........................................     1
Membership and Organization......................................    13
Legislative Activity.............................................    14
Oversight Summary................................................    43
    Part A--Full Committee Hearings..............................    43
    Part B--Subcommittee Hearings................................    73
    Part C--Waste, Fraud, Abuse and Mismanagement................   103
    Part D--Oversight Plan and Implementation....................   107
        Subpart A--Committee Oversight Plan......................   107
        Subpart B--Implementation of Oversight Plan..............   113
Regulatory Review................................................   129







                                                 Union Calendar No. 691
                                                 
114th Congress    }                                          {     Report
                           HOUSE OF REPRESENTATIVES
 2d Session       }                                          {    114-880

======================================================================



 
   REPORT ON THE ACTIVITIES OF THE COMMITTEE ON SMALL BUSINESS 114TH 
                                CONGRESS

                                _______
                                

  December 20, 2016.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

           Mr. Chabot, from the Committee on Small Business, 
                        submitted the following

                              R E P O R T

    Clause 1(d)(3) of rule XI of the Rules of the House of 
Representatives for the 114th Congress requires each standing 
committee to earlier than December 15 or adjournment of the 
Congress sine die (whichever occurs first), submit to the House 
a report on the activities of that Committee, including 
separate sections summarizing the legislative and oversight 
activities of that Committee.

JURISDICTION AND SPECIAL OVERSIGHT FUNCTION

    Clause 1(q) of rule X of the Rules of the House of 
Representatives of the 114th Congress sets forth the 
jurisdiction of the Committee on Small Business as follows--
    (1) Assistance to and protection of small businesses, 
including financial aid, regulatory flexibility, and paperwork 
reduction.
    (2) Participation of small-business enterprises in Federal 
procurement and Government contracts.
    Clause 3(l) of rule X of the Rules of the House of 
Representatives for the 114th Congress sets forth the Special 
Oversight Function of the Committee on Small Business as 
follows--
    The Committee on Small Business shall study and investigate 
on a continuing basis the problems of all types of small 
business.

RULES OF THE COMMITTEE ON SMALL BUSINESS FOR THE 114th CONGRESS

                         1. GENERAL PROVISIONS

    The Rules of the House of Representatives, in total (but 
especially with respect to the operations of committees rule X, 
cl. 1(q), cl. 2, cl. 3(l), and rule XI) are the rules of the 
Committee on Small Business to the extent applicable and are 
incorporated by reference. Each Subcommittee of the Committee 
on Small Business (``the Committee'') is a part of the 
Committee and is subject to the authority and direction of the 
Committee, and to the rules of the House and the rules adopted 
herein to the extent applicable.

                   2. REFERRAL OF BILLS BY THE CHAIR

    The Chair will retain consideration of all legislation 
referred to the Committee by the Speaker. No action will be 
required of a Subcommittee before legislation is considered for 
report by the Committee. Subcommittee chairs, pursuant to the 
rules set out herein, may hold hearings on any bill referred to 
the Committee.

                           3. DATE OF MEETING

    The regular meeting date of the Committee shall be the 
second Wednesday of every month when the House is in session. 
The Chair may dispense with the meeting of the Committee, if in 
the sole discretion of the Chair, there is no need for such 
meeting. Additional meetings may be called as deemed necessary 
by the Chair or at the request of the majority Members of the 
Committee pursuant to rule XI, cl. 2(c) of the rules of the 
House.
    At least 3 days' notice of such an additional meeting shall 
be given unless the Chair, with the concurrence of the Ranking 
Minority Member, determines that there is good cause to call 
the meeting on less notice or upon a vote by a majority of the 
Committee (a quorum being present). To the extent possible, the 
three days shall be counted from the 72 hours before the time 
of the meeting. Announcements of the meeting shall be published 
promptly in the Daily Digest and made publicly available in 
electronic form.
    The determination of the business to be considered at each 
meeting shall be made by the Chair subject to limitations set 
forth in House Rule XI, cl. 2(c).
    The Chair shall provide to each Member of the Committee, to 
the extent practicable, at least 48 hours in advance of a 
meeting, a copy of the bill, resolution, report or other item 
to be considered at the meeting, but no later than 24 hours 
before the meeting. Such material also shall be made available 
to the public at least 24 hours in advance in electronic form.
    The rules for notice and meetings as set forth in Rule 3 of 
these Rules shall not apply to special and emergency meetings. 
Clause 2(c)(2) of rule XI and clause 2(g)(3)(A) of rule XI of 
the Rules of the House, as applicable, shall apply to such 
meetings.
    A record vote of the Committee shall be provided on any 
question before the Committee upon the request of any Member of 
the Committee. A record of the vote of each Member of the 
Committee on a matter before the Committee shall be available 
in electronic form within 48 hours of such record vote, and, 
with respect to any roll call vote on any motion to amend or 
report, shall be included in the report of the Committee 
showing the total number of votes cast for and against and the 
names of those Members voting for and against.
    The Chair of the Committee shall, not later than 24 hours 
after consideration of a bill, resolution, report or other item 
cause the text of the reported item and any amendment adopted 
thereto to be made publicly available in electronic form.

                      4. ANNOUNCEMENT OF HEARINGS

    Public announcement of the date, place, and subject matter 
of any hearing to be conducted by the Committee shall be made 
no later than 7 calendar days before the commencement of the 
hearing. To the extent possible, the seven days shall be 
counted from 168 hours before the time of the Committee's 
hearing.
    The Chair, with the concurrence of the Ranking Minority 
Member, or upon a vote by the majority of the Committee (a 
quorum being present), may authorize a hearing to commence on 
less than 7 calendar days' notice.

A. Witness Lists

    Unless the Chair determines it is impracticable to do so, 
the Committee shall make a tentative witness list available at 
the time it makes the public announcement of the hearing. If a 
tentative witness list is not made available at the time of the 
announcement of the hearing, such witness list shall be made 
available as soon as practicable after such announcement is 
made. A final witness list shall be issued by the Committee no 
later than 48 hours prior to the commencement of the hearing.

B. Material for the Hearing

    The Chair shall provide to all Members of the Committee, as 
soon as practicable after the announcement of the hearing, a 
memorandum explaining the subject matter of the hearing and any 
official reports from departments and agencies on the subject 
matter of the hearing. Such material shall be made available to 
all Members of the Committee no later than 48 hours before the 
commencement of the hearing unless the Chair, after 
consultation with the Ranking Minority Member, determines that 
certain reports from departments or agencies should not be made 
available prior to the commencement of the hearing. Material 
provided by the Chair to all Members, whether provided prior to 
or at the hearing, shall be placed on the Committee website no 
later than 48 hours after the commencement of the hearing 
unless such material contains sensitive or classified 
information in which case such material shall be handled 
pursuant to Rule 15 of the Committee's Rules.

              5. MEETINGS AND HEARINGS OPEN TO THE PUBLIC

A. Meetings

    Each meeting of the Committee or its Subcommittees for the 
transaction of business, including the markup of legislation, 
shall be open to the public, including to radio, television, 
and still photography coverage, except as provided by House 
Rule XI, cl. 4. If the majority of Members of the Committee or 
Subcommittee present at the meeting, determine by a recorded 
vote in open session that all or part of the remainder of the 
meeting on that day shall be closed to the public because the 
disclosure of matters to be considered would endanger national 
security, would compromise sensitive law enforcement 
information, or would tend to defame, degrade, or incriminate 
any person or otherwise would violate any law or rule of the 
House; provided however, that no person other than Members of 
the Committee, and such congressional staff and such executive 
branch representatives they may authorize, shall be present in 
any meeting which has been closed to the public. The Chair and 
Ranking Minority Member are ex officio Members of all 
Subcommittees for the purpose of any meeting conducted by a 
Subcommittee.

B. Hearings

    Each hearing conducted by the Committee or its 
Subcommittees shall be open to the public, including radio, 
television and still photography coverage. If the majority of 
Members of the Committee or Subcommittee present at the 
hearing, determine by a recorded vote in open session, that all 
or part of the remainder of the hearing on that day shall be 
closed to the public because the disclosure of matters to be 
considered would endanger national security, would compromise 
sensitive law enforcement information, or would tend to defame, 
degrade, or incriminate any person or otherwise would violate 
any law or rule of the House; provided however, that the 
Committee or Subcommittee may by the same procedure also vote 
to close one subsequent day of hearings. Notwithstanding the 
requirements of the preceding sentence, a majority of those 
present (if the requisite number of Members are present under 
Committee rules for the purpose of taking testimony) may vote: 
(i) to close the hearing for the sole purpose of discussing 
whether the testimony or evidence to be received would endanger 
the national security, would compromise sensitive law 
enforcement information, or violate rule XI, cl. 2(k)(5) of the 
House or (ii) to close the hearing, as provided in clause 
2(k)(5) of rule XI of the House.
    The Chair and Ranking Minority Member are ex officio 
Members of all Subcommittees for any hearing conducted by a 
Subcommittee. Members of the Committee who wish to participate 
in a hearing of the Subcommittee to which they are not Members 
shall make such request to the Chair and the Ranking Minority 
Member of the Subcommittee at the commencement of the hearing. 
The Chair, after consultation with the Ranking Minority Member 
of the Subcommittee, shall grant such request.
    No Member of the House may be excluded from non-
participatory attendance at any hearing of the Committee or any 
Subcommittee, unless the House of Representatives shall by 
majority vote authorize the Committee or Subcommittees, for 
purposes of a particular subject of investigation, to close its 
hearing to Members by the same procedures designated to close 
hearings to the public.
    Members of Congress who are not Members of the Committee 
but would like to participate in a hearing shall notify the 
Chair and the Ranking Minority Member and submit a formal 
request no later than 24 hours before the commencement of the 
meeting or hearing.
    To the maximum extent practicable, the Committee shall 
provide audio and video coverage of each hearing or meeting for 
the transaction of business in a manner that allows the public 
to easily listen and view the proceedings and shall maintain 
the recordings of such coverage in a manner easily accessible 
to the public.

                              6. WITNESSES

A. Statement of Witnesses

    Each witness who is to appear before the Committee or 
Subcommittee shall file an electronic copy of the testimony 
with the Committee and the Ranking Minority Member no later 
than 48 hours before the commencement of the hearing. In 
addition, the witness shall provide 25 copies of the testimony 
by the commencement of the hearing. The Chair may waive the 
requirement by the witness providing 25 copies in which case 
the Committee or Subcommittee shall provide the 25 copies.
    Each non-governmental witness shall provide to the 
Committee and the Ranking Minority Member, no later than 48 
hours before the commencement of the hearing, a curriculum 
vitae or other statement describing their education, 
employment, professional affiliation or other background 
information pertinent to their testimony.
    As required by rule XI, cl. 2(g) of the Rules of the House, 
each non-governmental witness before the commencement of the 
hearing shall file with the Chair a disclosure form detailing 
any contracts or grants that the witness has with the federal 
government. Such information shall be posted on the Committee 
website within 24 hours after the witness appeared at the 
hearing.
    The failure to provide the materials set forth by the 
deadlines set forth in these rules may be grounds for excluding 
both the oral and written testimony of the witness unless 
waived by the Chair of the Committee or Subcommittee.
    The Committee will provide public access to printed 
materials, including the testimony of witnesses in electronic 
form on the Committee's website no later than 24 hours after 
the hearing is adjourned. Supplemental material provided after 
the hearing adjourns, shall be placed on the Committee website 
no later than 24 hours after receipt of such material.

B. Number of Witnesses and Witnesses Selected by the Minority

    For any hearing conducted by the Committee or Subcommittee 
there shall be no more than four non-governmental witnesses of 
which the Ranking Minority Member of the Committee or 
Subcommittee (as appropriate) is entitled to select one witness 
for the hearing. Witnesses selected by the Ranking Minority 
Member of the Committee or Subcommittee shall be invited to 
testify by the Chair of the Committee or Subcommittee (as 
appropriate). Rule 6(A) shall apply with equal force to 
witnesses selected by the Ranking Minority Member of the 
Committee or Subcommittee.
    The limitations set forth in the preceding paragraph shall 
not apply if the Committee holds a hearing to honor the work of 
the small business community in conjunction with the annual 
celebration of Small Business Week. Witness limitations for 
such a hearing shall be determined by the Chair in consultation 
with the Ranking Minority Member.

C. Interrogation of Witnesses

    Except when the Committee adopts a motion pursuant to 
subdivisions (B) and (C) of clause 2(i)(2) of rule XI of the 
Rules of the House, Committee Members may question witnesses 
only when they have been recognized by the Chair for that 
purpose. Members shall have the opportunity, as set forth in 
rule XI, cl. 2(j) of the Rules of the House, to question each 
witness on the panel for a period not to exceed five minutes. 
For any hearing, the Chair of the Committee or Subcommittee may 
offer a motion to extend the questioning of a witness or 
witnesses by the Member identified in the motion for more than 
five minutes as set forth in rule XI, cl. 2(j)(B).
    The Chair of the Committee or Subcommittee shall commence 
questioning followed by the Ranking Minority Member. 
Thereafter, questioning shall alternate between the majority 
and minority Members in order of their arrival at the hearing 
after the gavel has been struck to commence the hearing with 
the first arriving having priority over Members of his or her 
party. If Members arrive simultaneously or are there prior to 
the gavel being struck to commence the hearing, order of 
questioning shall be based on seniority.
    In recognizing Members to question witnesses, the Chair may 
take into consideration the ratio of majority and minority 
Members present in such a manner as to not disadvantage the 
Members of either party.

                              7. SUBPOENAS

    A subpoena may be authorized and issued by the Committee in 
the conduct of any investigation or series of investigations or 
activities to require the attendance and testimony of such 
witness and the production of such books, records, 
correspondence, memoranda, papers and documents, as deemed 
necessary. Such subpoena shall be authorized by a majority of 
the full Committee. The requirement that the authorization of a 
subpoena require a majority vote may be waived by the Ranking 
Member of the Committee. The Chair may issue a subpoena, in 
consultation with the Ranking Minority Member, when the House 
is out of session for more than three legislative days.

                               8. QUORUM

    A quorum, for purposes of reporting a measure or 
recommendation, shall be a majority of the Committee Members. 
For purposes of taking testimony or receiving evidence, a 
quorum shall be one Member from the Majority and one Member 
from the Minority. The Chair of the Committee or Subcommittee 
shall exercise reasonable comity by waiting for the Ranking 
Minority Member even if a quorum is present before striking the 
gavel to commence the hearing. For hearings held by the 
Committee or a Subcommittee in a location other than the 
Committee's hearing room in Washington, DC, a quorum shall be 
deemed to be present if the Chair of the Committee or 
Subcommittee is present.

                      9. AMENDMENTS DURING MARKUP

    Any amendment offered to any pending legislation before the 
Committee must be made available in written form by any Member 
of the Committee. If such amendment is not available in written 
form when requested, the Chair shall allow an appropriate 
period for the provision thereof and may adjourn the markup to 
provide sufficient time for the provision of such written 
amendment. Such period or adjournment shall not prejudice the 
offering of such amendment.
    For amendments to be accepted during mark-up, there is no 
requirement that the amendments be filed prior to commencement 
of the mark-up or prepared with the assistance of the Office of 
Legislative Counsel. Even though it is not necessary, Members 
seeking to amend legislation during mark-up should draft 
amendments with the assistance of the Office of Legislative 
Counsel and consult with the Chair or Ranking Member's staff 
(as appropriate) in the preparation of such amendments.

                    10. POSTPONEMENT OF PROCEEDINGS

    The Chair in consultation with the Ranking Minority Member 
may postpone further proceedings when a record vote is ordered 
on the question of approving any measure or matter or adopting 
an amendment. The Chair may resume postponed proceedings, but 
no later than 24 hours after such postponement, unless the 
House is not in session or there are conflicts with Member 
schedules that make it unlikely a quorum will be present to 
conduct business on the postponed proceeding. In such cases, 
the Chair will consult with Members to set a time as early as 
possible to resume proceedings but in no event later than the 
next meeting date as set forth in Rule 3 of these Rules. When 
proceedings resume on a postponed question, notwithstanding any 
intervening order for the previous question, an underlying 
proposition shall remain subject to further debate or amendment 
to the same extent as when the question was postponed.

              11. NUMBER AND JURISDICTION OF SUBCOMMITTEES

    There will be five Subcommittees as follows:

The Subcommittee on Agriculture, Energy and Trade

    This Subcommittee (which will consist of six (6) Republican 
Members and four (4) Democratic Members) will address policies 
that enhance rural economic growth, increasing America's energy 
independence and ensuring that America's small businesses can 
compete effectively in a global marketplace.
     Oversight of agricultural policies.
     Oversight of environmental issues and regulations 
(including agencies such as the Environmental Protection Agency 
and the Army Corps of Engineers).
     Oversight of energy issues, including expansion of 
domestic resources whether they are renewable or non-renewable.
     Oversight of international trade policy with 
particular emphasis on agencies that provide direct assistance 
to small businesses, such as: the Small Business 
Administration's (SBA) Office of International Trade, the 
Department of Commerce's United States Export Assistance 
Centers, the Department of Agriculture's Foreign Agricultural 
Service, and the Export-Import Bank.
     Oversight of infringement of intellectual property 
rights by foreign competition.

The Subcommittee on Health and Technology

    This Subcommittee (which will consist of six (6) Republican 
Members and four (4) Democratic Members) will address how 
health care policies may inhibit or promote economic growth and 
job creation by small businesses. In addition, the Subcommittee 
will examine small business job growth through the creation and 
adoption of advanced technologies.
     Oversight of the implementation of the Patient 
Protection and Affordable Care Act.
     Oversight of availability and affordability of 
health care coverage for small businesses.
     Oversight of general technology issues, including 
intellectual property policy in the United States.
     Oversight of United States telecommunications 
policies including, but not limited to, the National Broadband 
Plan and allocation of electromagnetic spectrum.
     The Small Business Innovation Research Program.
     Small Business Technology Transfer Program.

The Subcommittee on Economic Growth, Tax and Capital Access

    This Subcommittee (which will consist of six (6) Republican 
Members and four (4) Democratic Members) will evaluate the 
operation of the financial markets in the United States and 
their ability to provide needed capital to small businesses. In 
addition, the Subcommittee will review federal programs, 
especially those overseen by the SBA, aimed at assisting 
entrepreneurs in obtaining needed capital. Since the tax policy 
plays an integral role in access to capital, this Committee 
also will examine the impact of federal tax policies on small 
businesses.
     Oversight of capital access and financial markets.
     Implementation of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act.
     SBA financial assistance programs, including 
guaranteed loans, microloans, certified development company 
loans, and small business investment companies.
     Oversight of the Department of Agriculture 
business and industry guaranteed loan program.
     Oversight of general tax policy affecting small 
businesses.
     The management of the SBA disaster loan program.

The Subcommittee on Investigations, Oversight and Regulations

    This Subcommittee (which will consist of six (6) Republican 
Members and four (4) Democratic Members) will probe the 
efficient operation of government programs that affect small 
businesses, including the SBA, and develop proposals to make 
them operate in a more cost-effective manner. This Subcommittee 
also will review the regulatory burdens imposed on small 
businesses and how those burdens may be alleviated.
     Oversight of general issues affecting small 
businesses and federal agencies.
     Oversight of the management of the SBA.
     Oversight of the SBA Inspector General.
     Implementation of the Regulatory Flexibility Act.
     Oversight of the Office of Information and 
Regulatory Affairs at the Office of Management and Budget.
     Use of the Congressional Review Act.
     Transparency of the federal rulemaking process as 
required by the Administrative Procedure and Data Quality Acts.
     Implementation of the Paperwork Reduction Act.

The Subcommittee on Contracting and Workforce

    This Subcommittee (which will consist of six (6) Republican 
Members and four (4) Democratic Members) will assess the 
federal procurement system, including those programs designed 
specifically to enhance participation by small businesses in 
providing goods and services to the federal government. The 
Subcommittee will examine various programs designed to provide 
technical assistance to small businesses, whether specifically 
aimed at federal contractors or small businesses in general. 
Finally, the Subcommittee will review the broad scope of 
workforce issues that affect the ability of small businesses to 
obtain and maintain qualified employees.
     Oversight of government-wide procurement practices 
and programs affecting small businesses.
     Oversight of federal procurement policies that 
inhibit or expand participation by small businesses in the 
federal contracting marketplace.
     All contracting programs established by the Small 
Business Act, including HUBZone, 8(a), Women-, and Service 
Disabled Veteran-Owned Small Business Programs.
     Technical assistance provided to federal 
contractors and prospective contractors through SBA personnel, 
Offices of Small and Disadvantaged Business Utilization, and 
Procurement Technical Assistance Centers.
     The SBA Surety Bond guarantee program.
     Oversight of all federal policies that affect the 
workforce including, but not limited to, the roles of the 
Department of Labor and the National Labor Relations Board.
     SBA entrepreneurial development and technical 
assistance programs unrelated to participation in the federal 
government contracting.

                 12. POWERS AND DUTIES OF SUBCOMMITTEES

    Each Subcommittee is authorized to meet, hold hearings, 
receive evidence, and report to the Committee on any matters 
referred to it. Prior to the scheduling of any meeting or 
hearing of a Subcommittee, the Chair of the Subcommittee shall 
obtain the approval of the Chair of the Committee.
    No hearing or meeting of a Subcommittee shall take place at 
the same time as the meeting or hearing of the full Committee 
or another Subcommittee, provided however, that the 
Subcommittee Chairs may hold field hearings that conflict with 
those held by other Subcommittees of the Committee.

                          13. COMMITTEE STAFF

A. Majority Staff

    The employees of the Committee, except those assigned to 
the Minority as provided below, shall be appointed and 
assigned, and may be removed by the Chair of the Committee. The 
Chair shall fix their remuneration and they shall be under the 
general supervision and direction of the Chair.

B. Minority Staff

    The employees of the Committee assigned to the Minority 
shall be appointed and assigned, and their remuneration 
determined, as the Ranking Minority Member of the Committee 
shall decide.

C. Subcommittee Staff

    There shall be no separate staff assigned to Subcommittees. 
The Chair and Ranking Member shall endeavor to ensure that 
sufficient committee staff is made available in order that each 
Subcommittee may carry out the responsibilities set forth in 
Rule 11, supra.

                              14. RECORDS

    The Committee shall keep a complete record of all actions, 
which shall include a record of the votes on any question on 
which a recorded vote is demanded. The result of any vote by 
the Committee, or if applicable by a Subcommittee, including a 
voice vote, shall be posted on the Committee's website within 
24 hours after the vote has been taken. Such record shall 
include a description of the amendment, motion, order, or other 
proposition, the name of the Member voting for and against such 
amendment, motion, order, or other proposition, and the names 
of Members present but not voting. For any amendment, motion, 
order, or other proposition decided by voice vote, the record 
shall include a description and whether the voice vote was in 
favor or against.
    The Committee shall keep a complete record of all Committee 
and Subcommittee activity which, in the case of a meeting or 
hearing transcript shall include a substantially verbatim 
account of the remarks actually made during the proceedings 
subject only to technical, grammatical, and typographical 
corrections authorized by the person making the remarks.
    The records of the Committee at the National Archives and 
Records Administration shall be made available in accordance 
with rule VII of the Rules of the House. The Chair of the 
Committee shall notify the Ranking Member of the Committee of 
any decision, pursuant to rule VII, cl. 3(b)(3) or cl. 4(b), to 
withhold a record otherwise available, and the matter shall be 
presented to the Committee for a determination of the written 
request of any Member of the Committee.
    The Committee Rules shall be made publicly available in 
electronic form and published in the Congressional Record not 
later than 30 days after the Chair of the Committee is elected 
in each odd-numbered year.

           15. ACCESS TO CLASSIFIED OR SENSITIVE INFORMATION

    Access to classified or sensitive information supplied to 
the Committee or Subcommittees and attendance at closed 
sessions of the Committee or a Subcommittee shall be limited to 
Members and necessary Committee staff and stenographic 
reporters who have appropriate security clearance when the 
Chair determines that such access or attendance is essential to 
the functioning of the Committee or one of its Subcommittees.
    The procedures to be followed in granting access to those 
hearings, records, data, charts, and files of the Committee 
which involve classified information or information deemed to 
be sensitive shall be as follows:
    (A) Only Members of the House of Representatives and 
specifically designated Committee staff of the Committee on 
Small Business may have access to such information.
    (B) Members who desire to read materials that are in 
possession of the Committee shall notify the Clerk of the 
Committee in writing.
    (C) The Clerk of the Committee will maintain an accurate 
access log, which identifies the circumstances surrounding 
access to the information, without revealing the material 
examined.
    (D) If the material desired to be reviewed is material 
which the Committee or Subcommittee deems to be sensitive 
enough to require special handling, before receiving access to 
such information, individuals will be required to sign an 
access information sheet acknowledging such access and that the 
individual has read and understands the procedures under which 
access is being granted.
    (E) Material provided for review under this rule shall not 
be removed from a specified room within the Committee offices.
    (F) Individuals reviewing materials under this rule shall 
make certain that the materials are returned to the proper 
custodian.
    (G) No reproductions or recordings may be made of any 
portion of such materials.
    (H) The contents of such information shall not be divulged 
to any person in any way, form, shape, or manner and shall not 
be discussed with any person who has not received the 
information in the manner authorized by the rules of the 
Committee.
    (I) When not being examined in the manner described herein, 
such information will be kept in secure safes or locked file 
cabinets within the Committee offices.
    (J) These procedures only address access to information the 
Committee or Subcommittee deems to be sensitive enough to 
require special treatment.
    (K) If a Member of the House of Representatives believes 
that certain sensitive information should not be restricted as 
to dissemination or use, the Member may petition the Committee 
or Subcommittee to so rule. With respect to information and 
materials provided to the Committee by the Executive Branch or 
an independent agency as that term is defined in 44 U.S.C. 
3502, the classification of information and materials as 
determined by the Executive Branch or independent agency shall 
prevail unless affirmatively changed by the Committee or 
Subcommittee involved, after consultation with the Executive 
Branch or independent agency.
    (L) Other materials in the possession of the Committee are 
to be handled in accordance with normal practices and 
traditions of the Committee.

                          16. OTHER PROCEDURES

    The Chair of the Committee may establish such other 
procedures and take such actions as may be necessary to carry 
out the foregoing rules or to facilitate the effective 
operation of the Committee.

                   17. AMENDMENTS TO COMMITTEE RULES

    The rules of the Committee may be modified, amended or 
repealed by a majority vote of the Members, at a meeting 
specifically called for such purpose, but only if written 
notice of the proposed change or changes has been provided to 
each Member of the Committee at least 72 hours prior to the 
time of the meeting of the Committee to consider such change or 
changes.

                         18. BUDGET AND TRAVEL

    From the amount provided to the Committee in the primary 
expense resolution adopted by the House of Representatives in 
the 113th Congress, the Chair, after consultation with the 
Ranking Minority Member, shall designate one-third of the 
budget under the direction of the Ranking Minority Member for 
the purposes of minority staff, travel expenses of minority 
staff and Members, and minority office expenses.
    The Chair may authorize travel in connection with 
activities or subject matters under the legislative or 
oversight jurisdiction of the Committee as set forth in rule X 
of the Rules of the House.
    The Ranking Minority Member may authorize travel for any 
Minority Member or staff of the minority in connection with 
activities or subject matters under the Committee's 
jurisdiction as set forth in rule X of the Rules of the House. 
Before such travel, there shall be submitted to the Chair of 
the Committee in writing the following at least seven (7) 
calendar days prior specifying: (a) the purpose of the travel; 
(b) the dates during which the travel is to occur; (c) the 
names of the states or countries to be visited and the length 
of time spent in each; and (d) the names of Members and staff 
of the Committee participating in such travel. Prior approval 
shall not be required of Minority Staff traveling to 
participate in a deposition, authorized by the Chair in rule 16 
of these Rules of an individual located outside of the 
Washington, DC metropolitan area.

                         19. COMMITTEE WEBSITE

    The Chair shall maintain an official Committee website for 
the purpose of furthering the Committee's legislative and 
oversight responsibilities, including communicating information 
about Committee's activities to Committee Members and other 
Members of the House. The Ranking Minority Member may maintain 
a similar website for the same purpose, including communicating 
information about the activities of the Minority to Committee 
Members and other Members of the House.

                             20. VICE CHAIR

    Pursuant to the Rules of the House, the Chair shall 
designate a Member of the Majority to serve as Vice Chair of 
the Committee. The Vice Chair shall preside at any meeting or 
hearing during the temporary absence of the Chair. The Chair 
also reserves the right to designate a Member of the Committee 
Majority to serve as the Chair at a hearing or meeting.

                      MEMBERSHIP AND ORGANIZATION

                                 OF THE

                      COMMITTEE ON SMALL BUSINESS

                  ONE HUNDRED AND FOURTEENTH CONGRESS

                             FULL COMMITTEE

Rep. Nydia Velazquez (NY-06),        Rep. Steve Chabot (OH-01),
  Ranking Member                       Chairman
Rep. Judy Chu (CA-27)                Rep. Steve King (IA-04)
Rep. Janice Hahn (CA-44)             Rep. Blaine Luetkemeyer (MO-03)
Rep. Donald Payne, Jr. (NJ-10)       Rep. Richard Hanna (NY-22)
Rep. Grace Meng (NY-06)              Rep. Tim Huelskamp (KS-01)
Rep. Brenda Lawrence (MI-14)         Rep. Chris Gibson (NY-19)
[Rep. Mark Takai (HI-01)]\1\         Rep. Dave Brat (VA-07)
Rep. Yvette Clark (NY-09)            Del. Amua Amata Coleman Radewagen 
Rep. Alma Adams (NC-12)              (AS)
Rep. Seth Moulton                    Rep. Steve Knight (CA-25)
VACANT                               Rep. Carlos Curbelo (FL-26)
                                     Rep. Cresent Hardy (NV-04)
                                     Rep. Trent Kelly (MS-01)\2\
                                     Rep. Warren Davidson (OH-08)\3\
                                     VACANT\4\

             SUBCOMMITTEE ON AGRICULTURE, ENERGY AND TRADE

Rep. Grace Meng (NY-06),             Rep. Carlos Curbelo (FL-26),
  Ranking Member                       Chairman
Rep. Brenda Lawrence (MI-14)         Rep. Steve King (IA-04)
[Rep. Mark Takai (HI-01)]            Rep. Blaine Luetkemeyer (MO-03)
VACANT                               Rep. Tim Huelskamp (KS-01)
VACANT                               Rep. Chris Gibson (NY-19)
                                     Rep. Dave Brat (VA-07)

                 SUBCOMMITTEE ON HEALTH AND TECHNOLOGY

Rep. Seth Moulton (MA-06),           Del. Amua Amata Coleman Radewagen 
  Ranking Member                     (AS),
Rep. Judy Chu (CA-27)                  Chairman
VACANT                               Rep. Blaine Luetkemeyer (MO-03)
VACANT                               Rep. Carlos Curbelo (FL-26)
                                     VACANT
                                     VACANT
                                     VACANT

        SUBCOMMITTEE ON ECONOMIC GROWTH, TAX AND CAPITAL ACCESS

Rep. Judy Chu (CA-27),               Rep. Tim Huelskamp (KS-01),
  Ranking Member                       Chairman\5\
Rep. Janice Hahn (CA-44)             Rep. Richard Hanna (NY-22)
Rep. Donald Payne, Jr. (NJ-10)       Rep. Dave Brat (VA-07)
Rep. Yvette Clarke (NY-09)           Rep. Amua Amata Coleman Radewagen 
                                     (AS)
                                     Rep. Trent Kelly (MS-01)
                                     Rep. Warren Davidson (OH-08)

               SUBCOMMITTEE ON CONTRACTING AND WORKFORCE

Rep. Judy Chu (CA-27),               Rep. Richard Hanna (NY-22),
  Ranking Member\6\                    Chairman
Rep. Brenda Lawrence (MI-14)         Rep. Steve King (IA-04)
Rep. Yvette Clarke (NY-09)           Rep. Chris Gibson (NY-19)
VACANT                               Rep. Steve Knight (CA-25)
                                     Rep. Cresent Hardy (NV-02)
                                     Rep. Trent Kelly (MS-01)

       SUBCOMMITTEE ON INVESTIGATIONS, OVERSIGHT AND REGULATIONS

Rep. Alma Adams (NC-12),             Rep. Cresent Hardy (NV-04),
  Ranking Member                       Chairman
VACANT                               Steve Knight (CA-25)
VACANT                               Rep. Warren Davidson (OH-08)
VACANT                               VACANT
                                     VACANT
                                     VACANT

----------
\1\Rep. Takai died on July 20, 2016.
\2\Rep. Kelly was elected on June 2, 2015 in a special election to 
replace the late Rep. Alan Nunnelee and was appointed to the Committee 
on Small Business.
\3\Rep. Davidson was elected on June 7, 2016 in a special election to 
replace Speaker John Boehner and was appointed to the Committee on 
Small Business.
\4\On November 5, 2015, Rep. Tom Rice (SC-7) resigned as a Member of 
the Committee on Small Business and took a position on the Committee on 
Ways and Means. On February 4, 2016, Rep. Mike Bost resigned as a 
Member of the Committee on Small Business and took a position on the 
Committee on Transportation and Infrastructure.
\5\Rep. Huelskamp replaced Rep. Tom Rice (SC-07) as Chairman of the 
Subcommittee on January 8, 2016. Rep. Rice resigned his position as 
Chairman of the Subcommittee when he resigned from the Committee.
\6\After the death of Rep. Takai, Rep. Judy Chu was named Ranking 
Member of the Subcommittee on Contracting and Workforce.

                          Legislative Activity

    Clause 1(d) of rule XI of the Rules of the House of 
Representatives for the 114th Congress requires that each 
standing committee no later than January 2 of each odd-numbered 
year, submit to the House a report on the activities of that 
committee, including a separate section summarizing the 
legislative activities of that committee.

           SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENT ACT

                               (H.R. 207)

Summary

    H.R. 207 amends the Small Business Act to reauthorize and 
improve the Small Business Administration's Small Business 
Development Centers program.

Legislative History

    H.R. 207 was introduced by Ranking Member Nydia Velazquez 
on January 8, 2015. On February 2, 2016, the Subcommittee on 
Economic Growth, Tax and Capital Access held a hearing on the 
Small Business Development Center program titled ``SBA 
Management Review: Oversight of SBA's Entrepreneurial 
Development Offices.'' The hearing followed a report by the 
Government Accountability Office that identified SBA management 
problems and deficiencies. At the hearing, Subcommittee 
Chairman Tim Huelskamp asked SBA's Assistant Administrator in 
the Office of Entrepreneurial Development about a $1 million 
upgrade to SBA's Entrepreneurial Development Management System. 
The Assistant Administrator admitted that the redesigned system 
was not effective at achieving its purpose: measuring the 
performance outcomes of programs designed to help 
entrepreneurs.
    On March 23, 2016, the Committee met in open session and 
considered an Amendment in the Nature of a Substitute to H.R. 
207, introduced by Chairman Steve Chabot, which would also 
reauthorize the SBA Women's Business Centers and SCORE 
programs. The Amendment in the Nature of a Substitute to H.R. 
207, as amended, was ordered reported favorably to the House by 
voice vote. H.R. 207 was subsequently included as Section 1841-
1843, 1851-1855, and 1871-1878 in H.R. 4909, the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2017, 
which passed the House on May 18, 2016 by a vote of 277-147 
(Roll Call No. 216). The House provisions were not included in 
the conference report for S. 2943, the NDAA for FY 2017. No 
further action was taken on H.R. 207.

      RECOVERY IMPROVEMENTS FOR SMALL ENTITIES AFTER DISASTER ACT

                               (H.R. 208)

Summary

    H.R. 208 requires the SBA Administrator to extend the 
deadline for Superstorm Sandy disaster loan applications. It 
also modernizes SBA's disaster loan program.

Legislative History

    H.R. 208 was introduced by Representative Nydia Velazquez 
on January 8, 2015. On July 8, 2015, the Committee held a 
hearing titled ``The Calm Before the Storm: Oversight of SBA's 
Disaster Loan Program.'' The Committee heard testimony from an 
expert with the Government Accountability Office, who stated 
that as of June 2015, SBA had not implemented the guaranteed 
disaster loan programs Congress mandated in 2008, including the 
Immediate Disaster Assistance Program (IDAP)--a bridge loan 
program in which private-sector lenders would provide disaster 
victims with up to $25,000 and an SBA decision within 36 hours 
of a lender's application on behalf of a borrower. In addition, 
SBA had not conducted a formal documented evaluation of lender 
feedback to establish what implementation challenges the agency 
might face and to determine what, if any, statutory changes 
Congress could consider.
    On June 10, 2015, the Committee on Small Business met in 
open session and ordered H.R. 208 reported favorably, as 
amended, by voice vote. The bill passed the House, as amended, 
on July 13, 2015 by voice vote, and the Senate by unanimous 
consent on October 21, 2015. On November 16, 2015, the House 
passed H.R. 208, as amended by the Senate, by voice vote. It 
was signed into law on November 25, 2015 and became Pub. L. No. 
114-88.

     SMALL BUSINESS REGULATORY FLEXIBILITY IMPROVEMENTS ACT OF 2015

                               (H.R. 527)

Summary

    H.R. 527 amends the Regulatory Flexibility Act of 1980 
(RFA), as amended by the Small Business Regulatory Enforcement 
Fairness Act. The RFA requires federal agencies to assess the 
economic impacts of the rules they propose on small businesses, 
small not-for-profits, and small governmental jurisdictions, 
and if those impacts are significant, agencies must examine 
alternatives that would minimize those burdens. H.R. 527 would 
strengthen the RFA by: clarifying that agencies must measure 
both direct economic effects and reasonably foreseeable 
indirect effects; eliminating loopholes the Internal Revenue 
Service uses to avoid complying with the law's provisions; 
requiring agencies to perform more detailed analyses; mandating 
that the Small Business Administration (SBA) Chief Counsel for 
Advocacy promulgate government-wide RFA compliance regulations; 
expanding opportunities for small businesses to provide early 
input on new rules through Small Business Advocacy Review 
panels before rules are proposed; and strengthening the 
requirement that agencies periodically review existing 
regulations and further reduce small business impacts where 
feasible.

Legislative History

    On January 26, 2015, Chairman Steve Chabot introduced H.R. 
527. Given that H.R. 527 was nearly identical to predecessor 
bills that passed the House of Representatives in the 113th and 
112th Congresses, the Committee on Small Business did not hold 
any hearings on the bill. However, as identified elsewhere in 
this report, the Committee and its subcommittees examined 
agency compliance with the RFA in multiple hearings during the 
114th Congress.
    On January 27, 2015, the Committee on the Judiciary met in 
open session and ordered H.R. 527 favorably reported by a vote 
of 19-8. The Committee on Small Business waived jurisdiction to 
H.R. 527 to expedite the bill's consideration on the House 
floor. On February 5, 2015, H.R. 527 was considered on the 
House floor and passed, as amended, by a vote of 260-163 (Roll 
Call No. 68).

                    SECURITY IN BONDING ACT OF 2015

                               (H.R. 838)

Summary

    H.R. 838 amends the guarantee rate on the SBA's preferred 
surety bond program to bring it in line with the prior approval 
program. It also reduces abuse of surety bonds by ensuring that 
private bonds are backed by sufficient assets.

Legislative History

    H.R. 838 was introduced by Representative Richard Hanna on 
February 10, 2015. The Committee held a hearing on February 12, 
2015 titled ``Contracting and the Industrial Base,'' which 
looked at surety bond issues. Committee Members discussed 
raising the SBA's surety bond guarantee rate to attract more 
sureties without placing taxpayer funds at risk. This would 
make it easier for small businesses to obtain legitimate bonds 
and make disreputable sureties less attractive. Testimony at 
the hearing supplemented activities of the Committee during 
previous Congresses on the surety bond program.
    H.R. 838 was incorporated into H.R. 1735, the National 
Defense Authorization Act for FY 2016 as Section 839. H.R. 1735 
passed the Senate on May 14, 2015 by unanimous consent and the 
House, as amended, on November 5, 2015 (Roll Call No. 618) by a 
vote of 370-58. H.R. 838 was included as Section 874 of the 
House Amendment to S. 1356. The Senate agreed to the House 
amendment on November 10, 2015 (Roll Call No. 301) by a vote of 
91-3. S. 1356 was signed by the President on November 25, 2015 
and became Pub. L. No. 114-92.

         SMALL BUSINESS INVESTMENT COMPANY CAPITAL ACT OF 2015

                              (H.R. 1023)

Summary

    H.R. 1023 increases limits on the maximum amount of capital 
available to small business investment companies, thereby 
increasing the capital available to small businesses.

Legislative History

    H.R. 1023 was introduced by Chairman Steve Chabot on 
February 24, 2015. On July 25, 2013, the Subcommittee on 
Investigations, Oversight and Regulations held a hearing titled 
``Examining the Small Business Investment Company Program'' to 
review whether the Small Business Investment Company (SBIC) 
Program is meeting the needs of small business owners and 
reducing risk to taxpayers. The Committee heard from witnesses 
who strongly support allowing experienced managers of SBIC 
funds to increase their leverage, making more private capital 
available to small firms. On May 19, 2015, the Subcommittee on 
Economic Growth, Tax and Capital Access held a hearing titled 
``Improving Capital Access Programs within the SBA.'' Brett 
Palmer, a witness testifying on behalf of the Small Business 
Investors Alliance, applauded Members of the Committee for 
introducing H.R. 1023, legislation to strengthen the Small 
Business Investment Company Program. He then called on Congress 
to move the bipartisan bill forward, emphasizing that doing so 
would increase the amount of private funds available to small 
firms by roughly $750 million.
    On June 10, 2015, the Committee on Small Business met in 
open session and ordered H.R. 1023 reported favorably by voice 
vote. It passed the House on July 13, 2015 by voice vote. H.R. 
1023 was included as Section 521(b) in Title V of Division E of 
H.R. 2029, the Consolidated Appropriations Act of 2016, which 
was signed by the President on December 18, 2016 and became 
Pub. L. No. 114-113.

      SMALL ENTREPRENEUR SUBCONTRACTING OPPORTUNITIES ACT OF 2015

                              (H.R. 1386)

Summary

    H.R. 1386 holds senior executive personnel responsible for 
meeting a federal agency's small business prime contracting and 
subcontracting goals and percentages.

Legislative History

    H.R. 1386 was introduced by Representative Carlos Curbelo 
on March 17, 2015. The Committee held a hearing on February 12, 
2015 titled ``Contracting and the Industrial Base,'' which 
looked at the non-manufacturer rule and joint venturing and 
teaming issues. On November 18, 2015, the Subcommittee on 
Contracting and Workforce held a hearing titled ``Continuing 
Challenges for Small Contractors,'' which examined federal 
construction and challenges for contractors.
    H.R. 1386 was incorporated into H.R. 1481, which was 
ordered reported favorably by the Committee on Small Business 
on March 25, 2015. H.R. 1481 was incorporated into H.R. 1735, 
the National Defense Authorization Act for FY 2016 and then S. 
1356, which passed the Senate on May 14, 2015 by unanimous 
consent and the House, as amended, on November 5, 2016 (Roll 
Call No. 618) by a vote of 370-58. H.R. 1386 was included as 
Section 871 in the House amendment. The Senate agreed to the 
House amendment on November 10, 2015 (Roll Call No. 301) by a 
vote of 91-3. S. 1356 was signed by the President on November 
25, 2015 and became Pub. L. No. 114-92.

               SMALL BUSINESS JOINT VENTURING ACT OF 2015

                              (H.R. 1390)

Summary

    H.R. 1390 promotes the use of small business teams and 
joint ventures on multiple award contracts and bundled or 
consolidated contracts by requiring agencies to treat the past 
performance and qualification of the members of the team or 
joint venture as the past performance and qualifications of the 
team or joint venture.

Legislative History

    H.R. 1390 was introduced by Representative Steve Knight on 
March 17, 2015. The Committee held a hearing on February 12, 
2015 titled ``Contracting and the Industrial Base,'' at which 
the Committee examined ways to encourage joint ventures and 
teams.
    H.R. 1390 was included in H.R. 1481, which was reported 
favorably by the Committee on Small Business on March 25, 2015. 
H.R. 1481 was incorporated into H.R. 1735, the National Defense 
Authorization Act for FY 2016 and then S. 1356, which passed 
the Senate on May 14, 2015 by unanimous consent and the House, 
as amended, on November 5, 2015 (Roll Call No. 618) by a vote 
of 370-58. H.R. 1390 was included as Section 867 of the House 
amendment. The Senate agreed to the House amendment on November 
10, 2015 (Roll Call No. 301) by a vote of 91-3. S. 1356 was 
signed by the President on November 25, 2015 and became Pub. L. 
No. 114-92.

TO AMEND THE SMALL BUSINESS ACT TO REQUIRE THE IMPLEMENTATION OF A DATA 
            QUALITY IMPROVEMENT PLAN; AND FOR OTHER PURPOSES

                              (H.R. 1410)

Summary

    H.R. 1410 requires the SBA, in coordination with the 
Department of Defense and the General Services Administration, 
to implement a plan to improve the quality of data on bundled 
and consolidated contracts.

Legislative History

    H.R. 1410 was introduced by Delegate Aumua Amata Coleman 
Radewagen on March 17, 2015. On March 17, 2015, the 
Subcommittee on Contracting and Workforce held a hearing titled 
``Contracting and the Industrial Base II: Bundling, Goaling and 
the Office of Hearings and Appeals,'' which examined the role 
of subcontracting and the role of Procurement Center 
Representatives.
    H.R. 1410 was reported favorably by the Committee on Small 
Business on March 25, 2015. H.R. 1481 was subsequently 
incorporated into H.R. 1735, the National Defense Authorization 
Act for FY 2016 and then S. 1356, which passed the Senate on 
May 14, 2015 by unanimous consent and the House, as amended, on 
November 5, 2015 (Roll Call No. 618) by a vote of 370-58. H.R. 
1410 was included as Section 862 of the House amendment. The 
Senate agreed to the House amendment on November 10, 2015 (Roll 
Call No. 301) by a vote of 91-3. S. 1356 was signed by the 
President on November 25, 2015 and became Pub. L. No. 114-92.

            STRONGER VOICE FOR SMALL BUSINESSES ACT OF 2015

                              (H.R. 1429)

Summary

    H.R. 1429 permits petitions to the SBA Office of Hearings 
and Appeals for reconsideration of small business size 
standards rather than forcing small businesses to take these 
cases to federal court.

Legislative History

    H.R. 1429 was introduced by Representative Mike Bost on 
March 18, 2015. The Subcommittee on Contracting and Workforce 
held a hearing on March 17, 2015 titled ``Contracting and the 
Industrial Base II: Bundling, Goaling and the Office of 
Hearings and Appeals,'' at which the advantages of size 
standard appeals to SBA's Office of Hearings and Appeals was 
discussed. The Subcommittee on Agriculture, Energy and Trade 
held a hearing on November 19, 2015 where witnesses expressed 
support for the SBA establishing size standards for agriculture 
small businesses.
    H.R. 1429 was incorporated into H.R. 1735, the National 
Defense Authorization Act for FY 2016 as Section 862, and then 
S. 1356, which passed the Senate on May 14, 2015 by unanimous 
consent and the House, as amended, on November 5, 2015 (Roll 
Call No. 618) by a vote of 370-58. The Senate agreed to the 
House amendment on November 10, 2015 (Roll Call No. 301) by a 
vote of 91-3. S. 1356 was signed by the President on November 
25, 2015 and became Pub. L. No. 114-92.

            COMMONSENSE CONTRACTING COMPETITION ACT OF 2015

                              (H.R. 1444)

Summary

    H.R. 1444 regulates the use of reverse auctions for federal 
procurements using Small Business Act contracting authorities. 
The bill prohibits the use reverse auctions on contracts for 
design and construction services, for personal protective gear, 
and for highly technical items. In all other cases, the 
legislation requires training of contracting personnel, truth 
in negotiations, and adherence to current laws governing past 
performance and responsibility, even when relying upon a third 
party to conduct the reverse auction.

Legislative History

    H.R. 1444 was introduced by Representative Richard Hanna on 
March 18, 2015. The Subcommittee on Contracting and Workforce 
held a hearing on March 19, 2015 titled ``Contracting and the 
Industrial Base III: Reverse Auctions, Verification and the 
SBA's Role in Rulemaking,'' at which the Subcommittee examined 
the issues that reverse auctions pose for competition and the 
industrial base, and issues specific to the use of third-party 
auction providers and their relevance to the industrial base.
    H.R. 1444 was included in H.R. 1481, which was reported 
favorably to the House by the Committee on Small Business on 
March 25, 2015, as amended, by voice vote. Parts of H.R. 1481 
were incorporated into H.R. 1735, the National Defense 
Authorization Act for FY 2016; however, H.R. 1444 was not among 
the provisions that were included. No further action was taken 
on this legislation.

           SMALL CONTRACTORS IMPROVE COMPETITION ACT OF 2015

                              (H.R. 1481)

Summary

    H.R. 1481 addresses the declining population rate of small 
businesses in federal contracting by improving five problems 
facing small businesses. First, the legislation improves the 
metrics by which small business contracting is measured to 
focus on both prime contracting and subcontracting by small 
business concerns in a wide variety of industries and from a 
broad spectrum of small businesses within each industry. 
Second, it promotes accountability and transparency in contract 
bundling and consolidation. Third, it removes regulatory and 
administrative barriers to small business competition. Fourth, 
it enacts reforms to ensure that small business advocates have 
the necessary qualifications to perform their jobs. Finally, it 
improves the process for determining which firms qualify as 
small businesses.

Legislative History

    H.R. 1481 was introduced by Chairman Steve Chabot on March 
19, 2015. The full Committee held a hearing on February 12, 
2015 titled ``Contracting and the Industrial Base'' that 
examined the nonmanufacturer issue and joint venturing and 
teaming issues. On March 7, 2015, the Subcommittee on 
Contracting and Workforce held a hearing titled ``Contracting 
and the Industrial Base II: Bundling, Goaling and the Office of 
Hearings and Appeals,'' that looked at the use of 
subcontracting, questions of data quality, abuse of bundling 
and consolidation, and the subcontracting goals. On March 19, 
2015, the Subcommittee on Contracting and Workforce held a 
hearing titled ``Contracting and the Industrial Base III: 
Reverse Auctions, Verification and the SBA's Role in 
Rulemaking,'' that examined reverse auctions. Finally, on 
December 9, 2015, the Procurement Center Representatives, 
Commercial Market Representatives and Business Opportunity 
Specialist programs were the subject of a hearing of the 
Subcommittee on Contracting and Workforce titled ``Supporting 
Success: Empowering Small Business Advocates.''
    On March 25, 2015, the Committee on Small Business met in 
open session and ordered H.R. 1481, as amended, be reported 
favorably to the House by voice vote. H.R. 1481 included H.R. 
1386, H.R. 1390, H.R. 1410, H.R. 1444 and H.R 1583 (detailed 
below). Provisions of H.R. 1481 were incorporated into H.R. 
1735, the National Defense Authorization Act for FY 2016, and 
then S. 1356, which passed the Senate on May 14, 2015 by 
unanimous consent and the House, as amended, on November 5, 
2015 (Roll Call No. 618) by a vote of 370-58. The Senate agreed 
to the House amendment on November 10, 2015 (Roll Call No. 301) 
by a vote of 91-3. H.R. 1481 was included as Sections 862-865, 
867, and 871 of S. 1356. S. 1356 was signed by the President on 
November 25, 2015 and became Pub. L. No. 114-92.

         SMALL BUSINESS CONTRACTOR'S CLARIFICATION ACT OF 2015

                              (H.R. 1583)

Summary

    H.R. 1583 clarifies that the current nonmanufacturer rule 
only applies to contracts for goods, not contracts for 
services, despite recent court decisions to the contrary. This 
will allow small business service contractors to provide 
incidental items under a contract even if the items were not 
manufactured by a small business.

Legislative History

    H.R. 1583 was introduced by Representative Cresent Hardy on 
March 24, 2015. On February 12, 2015, the Committee held a 
hearing titled ``Contracting and the Industrial Base'' which 
discussed issues specific to contracting and the industrial 
base, such as the misapplication of the nonmanufacturer rule by 
the courts. Specifically, the Committee heard testimony from 
witnesses who stated that the nonmanufacturer rule exists to 
ensure that when competition for goods is restricted to small 
businesses, that the good ultimately purchased is the product 
of a small business. Witnesses also discussed the need for 
legislation that reinforces the traditional understanding of 
the nonmanufacturer rule.
    H.R. 1583 was included in H.R. 1481, which was reported 
favorably by the Committee on Small Business on March 25, 2015, 
as amended, by voice vote. H.R. 1481 was subsequently 
incorporated into H.R. 1735, the National Defense Authorization 
Act for FY 2016 and then S. 1356, which passed the Senate on 
May 14, 2015 by unanimous consent and the House, as amended, on 
November 5, 2015 (Roll Call No. 618) by a vote of 370-58. H.R. 
1583 was included as Section 864 of the House amendment. The 
Senate agreed to the House amendment on November 10, 2015 (Roll 
Call No. 301) by a vote of 91-3. S. 1356 was signed by the 
President on November 25, 2015 and became Pub. L. No. 114-92.

                 VETERANS ENTREPRENEURSHIP ACT OF 2015

                              (H.R. 2499)

Summary

    H.R. 2499 makes permanent a program within the Small 
Business Administration (SBA) that provides a fee waiver on 
loans made to veteran entrepreneurs seeking to start and grow 
their own small businesses at no cost to taxpayers. 
Specifically, the bill waives the upfront guarantee fee for a 
SBA 7(a) express loan at no cost to the taxpayer.

Legislative History

    H.R. 2499 was introduced by Chairman Steve Chabot on May 
21, 2015. On May 19, 2015, the Subcommittee on Economic Growth, 
Tax and Capital Access held a hearing titled ``Improving 
Capital Access Programs within the SBA.'' At the hearing, Rick 
Bradshaw, testifying on behalf of the National Association of 
Government Guaranteed Lenders (NAGGL), encouraged the Committee 
to work on solutions that could help SBA loan programs become 
more accessible to veterans and other underserved markets.
    On June 10, 2015, the Committee on Small Business met in 
open session and ordered H.R. 2499, as amended, be reported 
favorably by voice vote. It passed the House on July 13, 2015 
and the Senate, as amended, on July 23, 2015 by unanimous 
consent. The Senate amendment increased the lending cap for the 
Small Business Administration's 7(a) loan guarantee program to 
$23.5 billion. On July 27, 2015, Chairman Chabot moved to 
suspend the rules and concur with the Senate amendment to H.R. 
2499 and the bill passed by voice vote. The bill was signed by 
the President on July 28, 2015 and became Pub. L. No. 114-38.

                    EXPORT COORDINATION ACT OF 2015

                              (H.R. 2586)

Summary

    H.R. 2586 improves the coordination of federal export 
promotion resources and streamline the export process so more 
small businesses can sell goods overseas.

Legislative History

    H.R. 2586 was introduced by Chairman Steve Chabot on June 
1, 2015. It was referred to the Committee on Foreign Affairs. 
No further action was taken on this legislation by the House.

                  STATE TRADE COORDINATION ACT OF 2015

                              (H.R. 2587)

Summary

    H.R. 2587 revises membership of the Trade Promotion 
Coordinating Committee (TPCC) to include one or more 
presidential appointees representing state trade promotion 
agencies. This would enhance promotion of exports by United 
States businesses, including small firms and increase the 
effectiveness of federal-state coordination to better assist 
exporting small businesses.

Legislative History

    H.R. 2587 was introduced by Chairman Steve Chabot on June 
1, 2015, and referred to the Committee on Foreign Affairs. The 
Committee held a hearing on May 20, 2015 titled ``Across Town, 
Across Oceans: Expanding the Role of Small Business in Global 
Commerce'' which examined ways to increase the number of small 
businesses that export and improve the export process for small 
businesses.
    Portions of H.R. 2587 were included in H.R. 644, the Trade 
Facilitation and Trade Enforcement Act of 2015, and into the 
House-Senate conference report on H.R. 644 as Section 504, 
which passed the House on December 11, 2015 by a vote of 256-
158 (Roll Call No. 693) and the Senate on February 11, 2016 by 
a vote of 75-20 (Roll Call No. 22). It was signed by the 
President on February 24, 2016 and became Pub. L. No. 114-125.

                      MICROLOAN MODERNIZATION ACT

                              (H.R. 2670)

Summary

    H.R. 2670 modernizes the SBA Microloan program by raising 
the loan limit on loans held by microloan intermediaries 
creates flexibility in the technical assistance requirements; 
and allows intermediaries to manage their loan portfolios in 
ways that best meet the needs of their borrowers, expanding 
participation in the microloan program.

Legislative History

    H.R. 2670 was introduced by Representative Seth Moulton on 
June 4, 2015. On May 19, 2015, the Subcommittee on Economic 
Growth, Tax and Capital Access held a hearing titled 
``Improving Capital Access Programs within the SBA.'' The 
Subcommittee heard testimony from industry representatives 
regarding programs, including the Microloan program.
    On June 10, 2015, the Committee on Small Business met in 
open session and ordered H.R. 2670 reported favorably by voice 
vote. The bill was passed by the House on July 13, 2015 by 
voice vote. No further action was taken on this legislation.

AMEND THE CONSOLIDATED AND FURTHER CONTINUING APPROPRIATIONS ACT, 2015, 
WITH RESPECT TO FUNDING FOR CERTAIN SMALL BUSINESS ADMINISTRATION LOANS

                              (H.R. 3191)

Summary

    H.R. 3191 amends the Consolidated and Further Continuing 
Appropriations Act, 2015 with respect to funding available for 
Fiscal Year 2015 for certain general business loans, known as 
Section 7(a) loans, authorized under the Small Business Act and 
amends the Small Business Act to modify loan limitations. In 
addition, the bill requires the Small Business Administration 
to submit quarterly reports regarding loans issued under 
Section 7(a) of the Small Business Act to the House Committee 
on Small Business, the House Committee on Appropriations, the 
Senate Committee on Small Business and Entrepreneurship, and 
the Senate Committee on Appropriations for three years 
beginning on the date of enactment of H.R. 3191.

Legislative History

    H.R. 3191 was introduced by Chairman Chabot on July 23, 
2015 and referred to the Committee on Small Business. That same 
day, Senator Vitter, asked for immediate consideration of H.R. 
2499, the Veterans Entrepreneurship Act of 2015. The Senate 
amended H.R. 2499 to include language that was virtually the 
same as that of H.R. 3191, and H.R. 2499 was passed by the 
Senate by voice vote. On July 27, 2015, Chairman Chabot moved 
to suspend the rules and concur with the Senate amendment to 
H.R. 2499 and the bill passed by voice vote. H.R. 2499 was 
signed by the President on July 28, 2015 and became Pub. L. No. 
114-38.

   SMALL AGRICULTURE PRODUCER SIZE STANDARDS IMPROVEMENTS ACT OF 2015

                              (H.R. 3714)

Summary

    H.R. 3714 allows the Small Business Administration to 
create individual size standards for each type of agricultural 
producer rather than relying upon a statutorily-set single size 
standard for all agricultural enterprises. This change will 
allow small farmers and ranchers greater access to SBA programs 
and federal markets, as well as ensuring that the needs of 
these small businesses are considered during rulemakings.

Legislative History

    H.R. 3714 was introduced by Representative Mike Bost on 
October 8, 2015. The Subcommittee on Agriculture, Energy and 
Trade held a legislative hearing on November 19, 2015 titled 
``Improving Size Standards for Small Farmers and Ranchers.'' At 
the hearing, Subcommittee Chairman Carlos Curbelo noted that 
the existing size standard for agricultural enterprises is 
established in statute and has not been updated in 15 years. 
Witnesses explained that the size standard setting process 
needs to be modernized because it does not account for changes 
in industry structure, costs of production, economic conditions 
or other factors.
    H.R. 3714 was subsequently incorporated into H.R. 4341. On 
January 13, 2016, the Committee met in open session and ordered 
H.R. 4341, as amended, reported favorably to the House by voice 
vote. H.R. 3714 was also considered on the House Floor under 
suspension of the Rules on April 19, 2016 and passed by voice 
vote. H.R. 3714 was subsequently included in Section 1863 of 
Title XVIII of H.R. 4909, the National Defense Authorization 
Act (NDAA) for Fiscal Year (FY) 2017, which passed the House on 
May 18, 2016 by a vote of 277-147 (Roll Call No. 216).
    A provision that was substantially similar to H.R. 3714 was 
included as Section 1831 in the conference report for S. 2943, 
the FY 2017 NDAA, which was agreed to by the House on December 
2, 2016 by a vote of 375-34 (Roll Call No. 600). The conference 
report was then agreed to by the Senate on December 8, 2016 by 
a vote of 92-7. On December XX, 2016, it was signed by the 
President and became Pub. L. No. 114-XX.\7\
---------------------------------------------------------------------------
    \7\H.R. 3714 was included in S. 2936. At the time of this report's 
filing on December 20, 2016, S. 2936 had been presented to the 
President for his signature but had not yet been signed.
---------------------------------------------------------------------------

         EXPRESSING SUPPORT FOR ``NATIONAL ENTREPRENEURS' DAY''

                             (H. RES. 511)

Summary

    H. Res. 511 expresses support for designation of the third 
Tuesday in November as ``National Entrepreneurs'' Day.''

Legislative History

    H. Res. 511 was introduced by Chairman Steve Chabot on 
November 3, 2015. On November 17, 2015, the Committee on Small 
Business held a hearing titled ``National Entrepreneurs'' Day'' 
which highlighted the vital role that entrepreneurs play in the 
American economy. H. Res. 511 was referred to the Committee on 
Energy and Commerce. No action was taken on this legislation.

   IMPROVING OPPORTUNITIES FOR SERVICE-DISABLED VETERAN-OWNED SMALL 
                         BUSINESSES ACT OF 2015

                              (H.R. 3945)

Summary

    H.R. 3945 improves contracting opportunities for certain 
veteran-owned small businesses.

Legislative History

    H.R. 3945 was introduced by Representative Mike Coffman on 
November 5, 2015. On November 4, 2015, the Small Business 
Subcommittee on Contracting and Workforce held a joint hearing 
with the Veterans' Affairs Subcommittee on Oversight and 
Investigations to examine the Department of Veterans' Affairs' 
verification program for veteran-owned small businesses and 
service-disabled veteran-owned small businesses. The hearing 
followed a 2013 joint subcommittee hearing that explored 
challenges facing service-disabled, veteran-owned small 
businesses seeking federal contracts using both the SBA and the 
VA contracting programs. The Government Accountability Office 
provided an update to its 2013 findings that identified 
significant problems with the VA's verification program, 
including an insufficient data system and lack of a long term 
strategic plan for the program.
    H.R. 3945 was referred to the Committee on Veterans' 
Affairs Subcommittee on Economic Opportunity. It was 
subsequently incorporated into H.R. 4341. On January 13, 2016, 
the Committee met in open session and ordered H.R. 4341, as 
amended, reported favorably to the House by voice vote. H.R. 
3945 was subsequently included as Section 1864 of Title XVIII 
of H.R. 4909, the National Defense Authorization Act (NDAA) for 
Fiscal Year (FY) 2017, which passed the House on May 18, 2016 
by a vote of 277-147 (Roll Call No. 216).
    A provision that was substantially similar to H.R. 3945 was 
included as Section 1832 in the conference report for S. 2943, 
the FY 2017 NDAA, which was agreed to by the House on December 
2, 2016 by a vote of 375-34 (Roll Call No. 600). The conference 
report was then agreed to by the Senate on December 8, 2016 by 
a vote of 92-7. On December XX, 2016, it was signed by the 
President and became Pub. L. No. 114-XX.\8\
---------------------------------------------------------------------------
    \8\H.R. 3945 was included in S. 2936. At the time of this report's 
filing on December 20, 2016, S. 2936 had been presented to the 
President for his signature but had not yet been signed.
---------------------------------------------------------------------------

           EXPRESSING SUPPORT FOR ``SMALL BUSINESS SATURDAY''

                             (H. RES. 534)

Summary

    H. Res. 534 is a bipartisan resolution to increase 
awareness of the value of locally owned small businesses.

Legislative History

    H. Res. 534 was introduced on by Chairman Steve Chabot on 
November 19, 2015. It was referred to the Committee on Small 
Business. No action was taken on this legislation.

       COMMERCIAL MARKET REPRESENTATIVE CLARIFICATION ACT OF 2015

                              (H.R. 4198)

Summary

    H.R. 4198 codifies and modernize the Small Business 
Administration's (SBA) Commercial Market Representative (CMR) 
program to ensure that small business concerns have the 
opportunity to compete for subcontracts on large federal prime 
contracts, and that the SBA employees tasked with enforcement 
of the subcontracting program have clear direction.

Legislative History

    H.R. 4198 was introduced by Representative Dave Brat on 
December 9, 2015. On December 9, 2015, the Subcommittee on 
Contracting and Workforce examined contracting compliance and 
enforcement in a hearing titled ``Supporting Success: 
Empowering Small Business Advocates.'' At the hearing, 
witnesses discussed the lack of federal compliance guidance 
available to small business contractors and the fact that there 
is an insufficient number of SBA Procurement Center 
Representatives (PCRs). Witnesses also noted that CMRs lack 
clear, up-to-date job descriptions, and Subcommittee Members 
discussed whether direction in statute might help ensure that 
those advocates are better able to fulfill the spirit of the 
Small Business Act. The Subcommittee also considered ways to 
connect small businesses with private sector resources. On 
February 25, 2016, the Subcommittee held a hearing titled 
``Hotline Truths: Issues Raised by Recent Audits of Defense 
Contracting.'' At the hearing, witnesses stated that PCRs and 
CMRs play a critical role in contracting opportunities for 
small firms. Currently, witnesses said, there are too few PCRs 
and CMRs, they receive insufficient training and have too few 
resources. In addition, clarification of PCR and CMR duties and 
greater enforcement of reporting requirements is needed. 
Witnesses agreed that the reforms contained in H.R. 4341 would 
be helpful to make contracting opportunities available.
    H.R. 4198 was subsequently incorporated into H.R. 4341. On 
January 13, 2016, the Committee met in open session and ordered 
H.R. 4341, as amended, reported favorably to the House by voice 
vote. H.R. 4198 was subsequently included in Section 1812 of 
Title XVIII of H.R. 4909, the National Defense Authorization 
Act for Fiscal Year 2017, which passed the House on May 18, 
2016 by a vote of 277-147 (Roll Call No. 216). The House 
provision was not included in the conference report for S. 
2943, the FY 2017 NDAA. No further action was taken on H.R. 
4198.

         SERVICE PROVIDER OPPORTUNITY CLARIFICATION ACT OF 2015

                              (H.R. 4284)

Summary

    H.R. 4284 requires the SBA to issue regulations providing 
examples of activities that would be considered a failure to 
make a good faith effort to comply with the requirements 
imposed on any entity (other than a small business) awarded a 
prime contract exceeding $500,000 (or exceeding $1 million if 
for construction of a public facility) that contains a SBA 
clause that: 1) notifies potential offering companies of SBA 
requirements relating to contracts awarded pursuant to the 
negotiated method of procurement; or 2) requires any bidder 
selected for a contract award to submit to the appropriate 
federal agency a subcontracting plan which incorporates 
specified SBA information.

Legislative History

    H.R. 4284 was introduced by Representative Carlos Curbelo 
on December 17, 2015. The Subcommittee on Contracting and 
Workforce examined the importance of small business 
subcontractor viability on December 9, 2015 in a hearing titled 
``Supporting Success: Empowering Small Business Advocates.'' At 
the hearing, witnesses discussed the need to modernize and 
reform the federal rules for small business advocates so they 
can better assist small companies that do business with the 
federal government. At the hearing, it was noted that PCRs are 
charged with implementing the requirement that small businesses 
be afforded the maximum practicable opportunity to compete for 
prime contracts and the ability to compete for subcontracts on 
contracts not awarded to small firms. The SBA's current 49 PCRs 
also serve in 25 other roles at the SBA. The Subcommittee 
Members examined whether, given the recent decline in small 
business subcontracting, PCRs should be allowed to dispute a 
procurement if their recommendation on a subcontract was not 
followed.
    Witnesses also explained that when a contract is awarded to 
an other-than-small business and the contract is for more than 
$650,000, the contract must include a subcontracting plan 
enumerating the opportunities for small businesses to 
participate as subcontractors and the plan must assign both 
percentage and dollar value goals to these opportunities. The 
PCR, when available, provides an opinion to the contracting 
officer on the appropriate subcontracting goals. In a 2011 
report, the Government Accountability Office suggested that a 
way to increase the efficacy of PCRs was to permit PCRs to 
dispute a procurement if their recommendations on a 
subcontracting plan were not implemented. This would encourage 
the contracting officer to listen to the PCR on subcontracting, 
and serve to increase subcontracting goals and opportunities 
for small businesses. Agencies opposed this option because they 
did not think the PCRs had enough information about the overall 
contract or the prime contractor to accurately assess the 
subcontracting plan. The Subcommittee thought this suggestion 
may deserve additional consideration.
    H.R. 4284 was subsequently incorporated into H.R. 4341. On 
January 13, 2016, the Committee met in open session and ordered 
H.R. 4341, as amended, reported favorably to the House by voice 
vote. H.R. 4284 was also considered on the House Floor under 
suspension of the Rules on April 19, 2016 and passed by voice 
vote. H.R. 4284 was later included in Section 1821 of Title 
XVIII of H.R. 4909, the National Defense Authorization Act 
(NDAA) for Fiscal Year (FY) 2017, which passed the House on May 
18, 2016 by a vote of 277-147 (Roll Call No. 216).
    A provision that was substantially similar to H.R. 4284 was 
included as Section 1821 in the conference report for S. 2943, 
the FY 2017 NDAA, which was agreed to by the House on December 
2, 2016 by a vote of 375-34 (Roll Call No. 600). The conference 
report was then agreed to by the Senate on December 8, 2016 by 
a vote of 92-7. On December XX, 2016, it was signed by the 
President and became Pub. L. No. 114-XX.\9\
---------------------------------------------------------------------------
    \9\H.R. 4284 was included in S. 2936. At the time of this report's 
filing on December 20, 2016, S. 2936 had been presented to the 
President for his signature but had not yet been signed.
---------------------------------------------------------------------------

             PROMOTING RELIABLE SUBCONTRACTORS ACT OF 2016

                              (H.R. 4317)

Summary

    H.R. 4317 amends the Small Business Act to add a new 
paragraph creating a pilot program that allows small businesses 
to apply for past performance credit for work performed as a 
first tier subcontractor.

Legislative History

    H.R. 4317 was introduced by Representative Richard Hanna on 
January 5, 2016. The Subcommittee on Contracting and Workforce 
considered issues of subcontractors at a hearing titled 
``Continuing Challenges for Small Contractors'' on November 18, 
2015. As part of the Subcommittee's ongoing effort to improve 
the competitive viability of small contractors, the hearing 
witnesses discussed the unique problems that subcontractors 
face in the federal arena. For example, the Small Business Act 
requires that large prime contractors' businesses must 
negotiate goals for using small subcontractors. However, the 
last time a company suffered a penalty for violating its 
subcontracting plan was 1982. SBA lowered the subcontracting 
goal again last year, but agencies still are missing the goal: 
the subcontracting achievements report doesn't even provide 
dollars, although this information has been required since the 
1970s. Many large contractors don't even submit reports about 
their subcontracting activities. All of this sends the message 
that while Congress may want small business subcontractors to 
succeed, the agencies must enforce the laws.
    H.R. 4317 was incorporated into H.R. 4341. On January 13, 
2016, the Committee met in open session and ordered H.R. 4341, 
as amended, reported favorably to the House by voice vote. H.R. 
4317 was subsequently incorporated into Section 1822 of Title 
XVIII of H.R. 4909, the National Defense Authorization Act 
(NDAA) for Fiscal Year (FY) 2017, which passed the House on May 
18, 2016 by a vote of 277-147 (Roll Call No. 216).
    H.R. 4317 was included as Section 1822 in the conference 
report for S. 2943, the FY 2017 NDAA, which was agreed to by 
the House on December 2, 2016 by a vote of 375-34 (Roll Call 
No. 600). The conference report was then agreed to by the 
Senate on December 8, 2016 by a vote of 92-7. On December XX, 
2016, it was signed by the President and became Pub. L. No. 
114-XX.\10\
---------------------------------------------------------------------------
    \10\H.R. 4317 was included in S. 2936. At the time of this report's 
filing on December 20, 2016, S. 2936 had been presented to the 
President for his signature but had not yet been signed.
---------------------------------------------------------------------------

             MENTOR-PROTEGE COOPERATION REFORM ACT OF 2016

                              (H.R. 4322)

Summary

    H.R 4322 amends the National Defense Authorization Act for 
Fiscal Year 1991 to allow the Department of Defense (DoD) to 
rely upon the SBA's Office of Hearings and Appeals to make size 
determinations. The bill also improves cooperation between the 
DoD Mentor-Protege program and the SBA's Mentor-Protege 
program, including the sharing of data and measures of success.

Legislative History

    H.R. 4322 was introduced by Representative Steve Knight on 
January 6, 2016. On October 27, 2015, the Subcommittee on 
Contracting and Workforce held a hearing titled ``Maximizing 
Mentoring: How are the SBA and DoD Mentor-Protege Programs 
Serving Small Businesses?'' The hearing examined how the SBA is 
implementing changes to its mentor-protege program, how the SBA 
and DoD are measuring effectiveness of mentor-protege 
relationships and whether there are opportunities for increased 
partnering between the SBA and DoD programs. The Subcommittee 
also reviewed the findings of a GAO report that encouraged 
post-agreement tracking of mentor-protege relationships.
    H.R. 4322 was incorporated into H.R. 4341. On January 13, 
2016, the Committee met in open session and ordered H.R. 4341, 
as amended, reported favorably to the House by voice vote. H.R. 
4322 was subsequently included in Section 1831 of Title XVIII 
of H.R. 4909, the National Defense Authorization Act (NDAA) for 
Fiscal Year (FY) 2017, which passed the House on May 18, 2016 
by a vote of 277-147 (Roll Call No. 216).
    A provision that incorporated parts of H.R. 4322 was 
included as Section 1823 in the conference report for S. 2943, 
the FY 2017 NDAA, which was agreed to by the House on December 
2, 2016 by a vote of 375-34 (Roll Call No. 600). The conference 
report was then agreed to by the Senate on December 8, 2016 by 
a vote of 92-7. On December XX, 2016, it was signed by the 
President and became Pub. L. No. 114-XX.\11\
---------------------------------------------------------------------------
    \11\H.R. 4322 was included in S. 2936. At the time of this report's 
filing on December 20, 2016, S. 2936 had been presented to the 
President for his signature but had not yet been signed.
---------------------------------------------------------------------------

            UNIFYING SMALL BUSINESS TERMINOLOGY ACT OF 2016

                              (H.R. 4325)

Summary

    H.R. 4325 amends the Small Business Act to revise the range 
of the anticipated value of federal procurement contracts that 
must be reserved exclusively for small businesses.

Legislative History

    H.R. 4325 was introduced by Representative Nydia Velazquez 
on January 6, 2016. Although H.R. 4325 was not the subject of a 
separate hearing, the Committee has heard about, and considered 
the need for, unifying and updating certain terminology in the 
Small Business Act in a number of hearings over several years.
    H.R. 4325 was incorporated into H.R. 4341. On January 13, 
2016, the Committee met in open session and ordered H.R. 4341, 
as amended, reported favorably to the House by voice vote. H.R. 
4325 was also considered on the House Floor under suspension of 
the Rules on April 19, 2016 and passed by voice vote. H.R. 4325 
was subsequently included in Section 1804 of Title XVIII of 
H.R. 4909, the National Defense Authorization Act (NDAA) for 
Fiscal Year (FY) 2017, which passed the House on May 18, 2016 
by a vote of 277-147 (Roll Call No. 216). The House provision 
was not included in the conference report for S. 2943, the FY 
2017 NDAA. No further action was taken on H.R. 4325.

        SMALL AND DISADVANTAGED BUSINESS ENHANCEMENT ACT OF 2016

                              (H.R. 4326)

Summary

    H.R. 4326 amends the Small Business Act to expand the 
duties of the Office of Small and Disadvantaged Business 
Utilization. The bill clarifies that these offices should also 
provide assistance to service-disabled veteran-owned small 
businesses, and small businesses located in historically 
underutilized business zones (HUBZones). Additionally, the bill 
allows these offices with access to data to better detect abuse 
of government credit cards.

Legislative History

    H.R. 4326 was introduced by Representative Alma Adams on 
January 6, 2016. The bill was the subject of a June 23, 2015 
joint hearing by the Subcommittee on Oversight and 
Investigations titled ``Manipulation and Fraud in Reporting VA 
Small Business Goals,'' which examined the role of the Office 
of Service-Disabled and Veteran-Owned Small Businesses and the 
use of purchase cards. At the hearing, witnesses stated that 
the Department of Veterans Affairs had hidden billions of 
dollars in spending from the public and deprives small 
businesses of the opportunity to compete for contracts. It was 
also noted that the manipulation and misreporting of contract 
dollars were being concealed in an attempt to inflate the 
Department's small business goaling numbers. The Subcommittee 
on Contracting and Workforce held a hearing on December 9, 2015 
titled ``Helping the Helpers: Empowering Small Business 
Advocates,'' which explored the Procurement Center 
Representatives, the Office of Small and Disadvantaged Business 
Utilization, Commercial Market Representatives and Business 
Opportunity Specialist programs.
    H.R. 4326 was included in H.R. 4341. On January 13, 2016, 
the Committee met in open session and ordered H.R. 4341, as 
amended, reported favorably to the House by voice vote. H.R. 
4326 was also considered on the House Floor under suspension of 
the Rules on April 19, 2016 and passed by voice vote.
    H.R. 4326 was subsequently incorporated into Section 1813 
of Title XVIII of H.R. 4909, the National Defense Authorization 
Act (NDAA) for Fiscal Year (FY) 2017, which passed the House on 
May 18, 2016 by a vote of 277-147 (Roll Call No. 216). S. 2943 
passed the Senate on June 14, 2016 by a vote of 85-13 (Roll 
Call No. 98).
    A provision that was substantially similar to H.R. 4326 was 
included as Section 1812 in the conference report for S. 2943, 
the FY 2017 NDAA, which was agreed to by the House on December 
2, 2016 by a vote of 375-34 (Roll Call No. 600). The conference 
report was then agreed to by the Senate on December 8, 2016 by 
a vote of 92-7. On December XX, 2016, it was signed by the 
President and became Pub. L. No. 114-XX.\12\
---------------------------------------------------------------------------
    \12\H.R. 4326 was included in S. 2936. At the time of this report's 
filing on December 20, 2016, S. 2936 had been presented to the 
President for his signature but had not yet been signed.
---------------------------------------------------------------------------

           TRANSPARENCY IN SMALL BUSINESS GOALING ACT OF 2016

                              (H.R. 4329)

Summary

    H.R. 4329 amends the Small Business Act to modify 
determinations of the total value of contract awards.

Legislative History

    H.R. 4329 was introduced by Representative Judy Chu on 
January 6, 2016. On March 17, 2015, the Subcommittee on 
Contracting and Workforce held a hearing titled ``Contracting 
and the Industrial Base II: Bundling, Goaling and the Office of 
Hearings and Appeals.'' At the hearing, Subcommittee Members 
examined annual small business goals, SBA's goaling scorecard 
methodology and the discrepancies between the two. The 
Subcommittee also examined whether SBA's goals are 
inadvertently creating incentives to consolidate contracts, 
apply the wrong size standard to contracts, and ignore 
subcontracting opportunities for small businesses. Robert 
Burton, a partner with the Venable law firm in Washington, DC, 
expressed concern that although SBA concluded that for fiscal 
year 2013 the federal government deserved an ``A,'' meaning 
that the government met or exceeded between 100 percent and 119 
percent of its goals (the actual percentage was 100.60%), it 
did not meet two of its prime contracting goals, specifically 
Women-Owned Small Businesses and Historically Underutilized 
Business Zones. Alan Chvotkin, Executive Vice President and 
Counsel with the Professional Services Council in Washington, 
DC, argued that in the goal setting process, SBA and the 
agencies must evaluate not only top-line small business goals, 
but also analyze and comment on changes in the agency's 
business base and addressable market.
    H.R. 4329 was incorporated into H.R. 4341. On January 13, 
2016, the Committee met in open session and ordered H.R. 4341, 
as amended, reported favorably to the House by voice vote. H.R. 
4329 was subsequently included in Section 1803 of Title XVIII 
of H.R. 4909, the National Defense Authorization Act (NDAA) for 
Fiscal Year (FY) 2017, which passed the House on May 18, 2016 
by a vote of 277-147 (Roll Call No. 216).
    A provision aimed at addressing the concerns of H.R. 4329 
was included as Section 1802 in the conference report for S. 
2943, the FY 2017 NDAA, which was agreed to by the House on 
December 2, 2016 by a vote of 375-34 (Roll Call No. 600). The 
conference report was then agreed to by the Senate on December 
8, 2016 by a vote of 92-7. On December XX, 2016, it was signed 
by the President and became Pub. L. No. 114-XX.\13\
---------------------------------------------------------------------------
    \13\H.R. 4329 was included in S. 2936. At the time of this report's 
filing on December 20, 2016, S. 2936 had been presented to the 
President for his signature but had not yet been signed.
---------------------------------------------------------------------------

   IMPROVING CONTRACT PROCUREMENT FOR SMALL BUSINESSES THROUGH MORE 
                     ACCURATE REPORTING ACT OF 2016

                              (H.R. 4330)

Summary

    H.R. 4339 amends the Small Business Act to require the 
Small Business Administration to report to the President and 
Congress an analysis of the number and dollar amount of prime 
contracts awarded by the federal agencies each fiscal year, 
including those owned and controlled by service-disabled 
veterans, located in qualified HUBZones, owned and controlled 
by socially and economically disadvantaged individuals, owned 
by an Indian tribe, an Alaska Native Corporation or a Native 
Hawaiian Organization, or owned and controlled by women.

Legislative History

    H.R. 4330 was introduced by Representative Yvette Clarke on 
January 6, 2016. On November 4, 2015 the Committee on Small 
Business Subcommittee on Contracting and Workforce and the 
Committee on Veterans' Affairs Subcommittee on Investigations 
and Oversight held a hearing titled ``An Examination of 
Continued Changes in VA's Vets First Verification Process,'' 
which discussed contracting programs for service-disabled 
veteran-owned small businesses. On June 23, 2015, the Committee 
on Small Business Subcommittee on Investigations, Oversight and 
Regulations held a joint hearing with the Committee on 
Veterans' Affairs Subcommittee on Oversight and Investigations 
titled ``Manipulation and Fraud in Reporting VA Small Business 
Goals,'' which examined the role of the Office of Small and 
Disadvantaged Business Utilization and the use of federal 
government agency purchase cards.
    H.R. 4330 was incorporated into H.R. 4341. On January 13, 
2016, the Committee met in open session and ordered H.R. 4341, 
as amended, reported favorably to the House by voice vote. H.R. 
4330 was subsequently included in Section 1802 of Title XVIII 
of H.R. 4909, the National Defense Authorization Act (NDAA) for 
Fiscal Year (FY) 2017, which passed the House on May 18, 2016 
by a vote of 277-147 (Roll Call No. 216). The House provision 
was not included in the conference report for S. 2943, the FY 
2017 NDAA. No further action was taken on H.R. 4330.

  SMALL BUSINESS EASY CONTRACT COMPLIANCE ENHANCEMENT AND LIST ACT OF 
                                  2016

                              (H.R. 4331)

Summary

    H.R. 4331 amends the Small Business Act and the National 
Defense Authorization Act for Fiscal Year 1991 to ensure small 
businesses receive assistance navigating federal contracting 
regulations.

Legislative History

    H.R. 4331 was introduced by Representative Cresent Hardy on 
January 6, 2016 and referred to the Committee on Small Business 
and the Committee on Armed Services. H.R. 4331 was incorporated 
into H.R. 4341. On January 13, 2016, the Committee on Small 
Business met in open session and ordered H.R. 4341, as amended, 
reported favorably to the House by voice vote. H.R. 4331 was 
subsequently included in Section 1814 of Title XVIII of H.R. 
4909, the National Defense Authorization Act (NDAA) for Fiscal 
Year (FY) 2017, which passed the House on May 18, 2016 by a 
vote of 277-147 (Roll Call No. 216).
    H.R. 4284 was included as Section 1813 in the conference 
report for S. 2943, the FY 2017 NDAA, which was agreed to by 
the House on December 2, 2016 by a vote of 375-34 (Roll Call 
No. 600). The conference report was then agreed to by the 
Senate on December 8, 2016 by a vote of 92-7. On December XX, 
2016, it was signed by the President and became Pub. L. No. 
114-XX.\14\
---------------------------------------------------------------------------
    \14\H.R. 4331 was included in S. 2936. At the time of this report's 
filing on December 20, 2016, S. 2936 had been presented to the 
President for his signature but had not yet been signed.
---------------------------------------------------------------------------

           MAXIMIZING SMALL BUSINESS COMPETITION ACT OF 2016

                              (H.R. 4332)

Summary

    H.R. 4332 amends the Small Business Act to clarify the 
duties of Procurement Center Representatives (PCRs) with 
respect to reviewing solicitations for a contract or task order 
contract.

Legislative History

    H.R. 4322 was introduced by Representative Trent Kelly on 
January 6, 2016. The Subcommittee on Contracting and Workforce 
held a hearing on December 9, 2015 titled ``Supporting Success: 
Empowering Small Business Advocates.'' At the hearing, 
witnesses said that while some progress has been made for small 
business advocates to better advise and assist small 
businesses, there is a need to modernize and reform federal 
rules for PCRs, Offices of Small and Disadvantaged Business 
Utilization, Business Opportunity Specialists, and Commercial 
Mark Representatives. On March 17, 2015, the Subcommittee on 
Contracting and Workforce held a hearing titled ``Contracting 
and the Industrial Base II: Bundling, Goaling and the Office of 
Hearings and Appeals.'' At the hearing, witnesses stressed the 
need to modernize and reform federal laws for small business 
advocates so they can better advise and assist small companies 
who do business with the federal government. Stakeholders told 
the Subcommittee that while more competition from small 
business contractors drives down prices and saves taxpayers 
money, more small businesses are being forced out of the 
process altogether. While data shows contract dollar amounts 
have increased, so too have the size of those contracts, which 
necessarily limits the number of small firms that can 
participate. Witnesses also raised concerns about the SNA's 
analysis of small business participation in federal 
procurements.
    H.R. 4332 was subsequently incorporated into H.R. 4341. On 
January 13, 2016, the Committee met in open session and ordered 
H.R. 4341, as amended, reported favorably to the House by voice 
vote. H.R. 4332 was also considered on the House Floor under 
suspension of the Rules on April 19, 2016 and passed by voice 
vote. H.R. 4332 was subsequently included in Section 1811 of 
Title XVIII of H.R. 4909, the National Defense Authorization 
Act (NDAA) for Fiscal Year (FY) 2017, which passed the House on 
May 18, 2016 by a vote of 277-147 (Roll Call No. 216).
    H.R. 4332 was included as Section 1811 in the conference 
report for S. 2943, the FY 2017 NDAA, which passed the House on 
December 2, 2016 by a vote of 375-34 (Roll Call No. 600). The 
conference report was then passed by the Senate on December 8, 
2016 by a vote of 92-7. On December XX, 2016, it was signed by 
the President and became Pub. L. No. 114-XX.\15\
---------------------------------------------------------------------------
    \15\H.R. 4332 was included in S. 2936. At the time of this report's 
filing on December 20, 2016, S. 2936 had been presented to the 
President for his signature but had not yet been signed.
---------------------------------------------------------------------------

      EDUCATION FOR CONTRACTING PERSONNEL IMPROVEMENT ACT OF 2016

                              (H.R. 4337)

Summary

    H.R. 4337 amends the Small Business Act to require the 
Administrator of the Small Business Administration to provide 
information on regulatory changes and regulatory compliance 
training materials to certain entities.

Legislative History

    H.R. 4337 was introduced by Representative Grace Meng on 
January 6, 2016. On December 9, 2015, the Subcommittee on 
Contracting and Workforce examined compliance and enforcement 
in a hearing titled ``Supporting Success: Empowering Small 
Business Advocates.'' At the hearing, witnesses pointed out the 
lack of federal compliance guidance available to small business 
contractors and the fact that there is an insufficient number 
of SBA Procurement Center Representatives. The Subcommittee 
also considered ways to connect small businesses with private 
sector resources. In addition, witnesses noted that Commercial 
Market Representatives lack clear, up-to-date job descriptions, 
and Subcommittee Members discussed whether direction in statute 
might help ensure that those advocates are better able to 
fulfill the spirit of the Small Business Act.
    H.R. 4337 was incorporated into H.R. 4341. On January 13, 
2016, the Committee met in open session and ordered H.R. 4341, 
as amended, reported favorably to the House by voice vote. H.R. 
4337 was later included in Section 1861 of Title XVIII of H.R. 
4909, the National Defense Authorization Act (NDAA) for Fiscal 
Year (FY) 2017, which passed the House on May 18, 2016 by a 
vote of 277-147 (Roll Call No. 216).
    H.R. 4337 was included as Section 1814 in the conference 
report for S. 2943, the FY 2017 NDAA, which was agreed to by 
the House on December 2, 2016 by a vote of 375-34 (Roll Call 
No. 600). The conference report was then agreed to by the 
Senate on December 8, 2016 by a vote of 92-7. On December XX, 
2016, it was signed by the President and became Pub. L. No. 
114-XX.\16\
---------------------------------------------------------------------------
    \16\H.R. 4337 was included in S. 2936. At the time of this report's 
filing on December 20, 2016, S. 2936 had been presented to the 
President for his signature but had not yet been signed.
---------------------------------------------------------------------------

             IMPROVING SMALL BUSINESS ADVOCACY ACT OF 2016

                              (H.R. 4339)

Summary

    H.R. 4339 would amend the Small Business Act to clarify the 
responsibilities of the Small Business Administration's 
Business Opportunity Specialist program.

Legislative History

    H.R. 4339 was introduced by Representative Maxine Waters on 
January 6, 2016. The Business Opportunity Specialist program 
was the subject of a hearing by the Subcommittee on Contracting 
and Workforce on December 9, 2015 titled ``Supporting Success: 
Empowering Small Business Advocates.'' H.R. 4339 was an 
amendment to H.R. 4341 which was adopted by voice vote in the 
markup on January 13, 2016. H.R. 4341, as amended, was reported 
favorably by the Committee.
    H.R. 4341 was later included in H.R. 4909, the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2017, 
which passed the House on May 18, 2016 by a vote of 277-147 
(Roll Call No. 216). H.R. 4339 was included as Section 1815 of 
Title XIII of H.R. 4909. S. 2943 passed the Senate on June 14, 
2016 by a vote of 85-13 (Roll Call No. 98). The House provision 
was not included in the conference report to S. 2943, the NDAA 
for FY 2017. No further action was taken on H.R. 4339.

 SMALL BUSINESS CONTRACTING AND ACQUISITION PROGRAMS EFFICIENCY ACT OF 
                                  2016

                              (H.R. 4340)

Summary

    H.R. 4340 would require the Comptroller General of the 
United States to conduct a review of the Small Business 
Administration's Office of Government Contracting and Business 
Development.

Legislative History

    H.R. 4340 was introduced by Representative Amua Amata 
Coleman Radewagen on January 7, 2016. H.R. 4340 was 
incorporated into H.R. 4341. On January 13, 2016, the Committee 
met in open session and ordered H.R. 4341, as amended, reported 
favorably to the House by voice vote. H.R. 4337 was later 
included as directive report language in H.R. 4909, the 
National Defense Authorization Act for Fiscal Year 2017, which 
passed the House on May 18, 2016 by a vote of 277-147 (Roll 
Call No. 216).

           DEFENDING AMERICA'S SMALL CONTRACTORS ACT OF 2016

                              (H.R. 4341)

Summary

    H.R. 4341 amends the Small Business Act to expand and 
improve opportunities for America's small businesses to compete 
for federal contracts. The measure would modernize the Small 
Business Act and the SBA's reporting requirements to ensure 
that the language used is clear and consistent across federal 
procurement programs; strengthens small business advocates 
within SBA and other federal agencies so they can promote 
competition and compliance; improves opportunities for small 
businesses to compete for subcontracts, and then to capitalize 
on that experience to compete as prime contractors; improves 
coordination and data sharing between the SBA's government-wide 
mentor-protege programs and the mentor-protege program at the 
Department of Defense; and implements common sense reforms to 
ensure integrity in small business programs, such as the 
agricultural size standards, veterans contracting programs, SBA 
operations and contracting officer training programs.

Legislative History

    H.R. 4341 was introduced by Chairman Steve Chabot on 
January 7, 2016. The Committee held thirteen hearings that 
examined issues covered by H.R. 4341. On February 12, 2015, the 
Full Committee held a hearing titled ``Contracting and the 
Industrial Base,'' that examined surety bond issues. On March 
7, 2015, the Subcommittee on Contracting and Workforce held a 
hearing titled ``Contracting and the Industrial Base II: 
Bundling, Goaling and the Office of Hearings and Appeals,'' 
that considered the issues of subcontracting and the role of 
Procurement Center Representatives. On March 19, 2015, the 
Subcommittee on Contracting and Workforce held a hearing titled 
``Contracting and the Industrial Base III: Reverse Auctions, 
Verification and the SBA's Role in Rulemaking'' that looked at 
the Service-Disabled Veteran-Owned Small Business verification 
process and the Office of Government Contracting and Business 
Development organizational issues. On June 4, 2015, the 
Subcommittee on Contracting and Workforce held a hearing titled 
``Sizing up Small Businesses: SBA's Failure to Implement 
Congressional Direction,'' which looked at size standards and 
Office of Government Contracting and Business Development 
organizational issues.
    On June 23, 2015, the Small Business Subcommittee on 
Investigations, Oversight and Regulations held a joint hearing 
with House Veterans' Affairs Subcommittee on Oversight and 
Investigations titled ``Manipulation and Fraud in Reporting VA 
Small Business Goals,'' that examined the role of the Office of 
Small and Disadvantaged Business Utilization and the use of 
purchase cards. On October 27, 2015, the Subcommittee on 
Contracting and Workforce held a hearing titled ``Maximizing 
Mentoring: How are the SBA and DoD Mentor-Protege Programs 
Serving Small Businesses?'' that examined the Department of 
Defense and SBA mentor-protege programs. On November 4, 2015, 
the Subcommittee on Contracting and Workforce and the House 
Veterans' Affairs Subcommittee on Investigations and Oversight 
held a hearing titled ``An Examination of Continued Challenges 
in VA's Vets First Verification Process,'' which explored the 
VA and SBA verification programs for service-disabled veteran-
owned small business contractors.
    On November 18, 2015, the Subcommittee on Contracting and 
Workforce held a hearing titled ``Continuing Challenges for 
Small Contractors,'' which examined subcontracting issues and 
goaling and transparency challenges. The Subcommittee on 
Agriculture, Energy and Trade held a hearing on size standards 
for agricultural producers on November 19, 2015 titled 
``Improving Size Standards for Farmers and Ranchers.'' The 
Procurement Center Representative, Office of Small and 
Disadvantaged Business Utilization, Commercial Market 
Representative and Business Opportunity Specialist programs 
were the subject of a hearing on December 9, 2015 titled, 
``Supporting Success: Empowering Small Business Advocates.'' On 
February 3, 2016, the Subcommittee on Contracting and Workforce 
held a hearing titled ``SBA Management Review: Office of 
Government Contracts and Business Development'' that looked at 
the management of that office. On February 25, 2016, the 
Subcommittee on Contracting and Workforce looked at compliance 
with subcontracting goals in a hearing titled ``Hotline Truths: 
Issues Raised by Recent Audits of Defense Contracting.'' 
Finally, on April 5, 2016, the Subcommittee on Contracting and 
Workforce held a hearing titled ``Challenges for Small Defense 
Contractors,'' which examined compliance challenges and other 
issues.
    H.R. 4341 included H.R. 3714, H.R. 4317, H.R. 4198, H.R. 
4340, H.R. 4322, H.R. 4331, H.R. 4332, H.R. 4284, H.R. 4325, 
H.R. 4337, H.R. 4329, H.R. 4326, H.R. 4330 and H.R. 3945. On 
January 13, 2016, the Committee met in open session. During the 
markup, H.R. 4339 was incorporated into H.R. 4341 as an 
amendment which was adopted by voice vote. The Committee 
ordered H.R. 4341, as amended, reported favorably to the House 
by voice vote. No further action was taken on H.R. 4341. The 
legislation in H.R. 4341 was subsequently incorporated into 
Title XVIII of H.R. 4909, the National Defense Authorization 
Act (NDAA) for Fiscal Year (FY) 2017, which passed the House on 
May 18, 2016 (Roll Call No. 216) by a vote of 277-147.
    Most of the provisions in H.R. 4341 were included in Title 
XVIII of the conference report for S. 2943, the FY 2017 NDAA, 
which was agreed to by the House on December 2, 2016 by a vote 
of 375-34 (Roll Call No. 600). The conference report was then 
agreed to by the Senate on December 8, 2016 by a vote of 92-7. 
On December XX, 2016, it was signed by the President and became 
Pub. L. No. 114-XX.\17\
---------------------------------------------------------------------------
    \17\Certain legislation contained in H.R. 4341 was included in S. 
2936. At the time of this report's filing on December 20, 2016, S. 2936 
had been presented to the President for his signature but had not yet 
been signed.
---------------------------------------------------------------------------

                  HELPING ANGELS LEAD OUR STARTUPS ACT

                              (H.R. 4498)

Summary

    H.R. 4498 clarifies one of the intentions of the 2012 
Jumpstart Our Business Startups (JOBS) Act by allowing angel 
investor groups established by organizations such as local 
governments, non-profits and universities hold events designed 
to let entrepreneurs showcase their work and connect with 
potential investors. A Securities and Exchange Commission 
regulation promulgated pursuant to the JOBS Act had created an 
unintended consequence by classifying events held by Angel 
Investors as general solicitations and subject to an 
accreditation process.

Legislative History

    H.R. 4498 was introduced by Chairman Steve Chabot on 
February 9, 2016. On April 14, 2016, the Committee on Financial 
Services' Subcommittee on Capital Markets and Government 
Sponsored Enterprises held a hearing titled ``The JOBS Act at 
Four: Examining its Impact and Proposals to Further Enhance 
Capital Formation,'' which looked at the effects of JOBS Act 
regulations on angel investors. On March 2, 2016, the Committee 
on Financial Services met in open session and ordered H.R. 4498 
reported to the House by a vote of 44-13. On April 27, 2016, 
H.R. 4498 passed the House by a vote of 325-89 (Roll Call No. 
171). No further action was taken on this legislation.

        COMMERCIALIZING ON SMALL BUSINESS INNOVATION ACT OF 2016

                              (H.R. 4783)

Summary

    H.R. 4783 reauthorizes the Small Business Innovation and 
Research (SBIR) program and the Small Business Technology 
Transfer (STTR) program for five years beyond the current 
September 30, 2017 expiration date. The bill allows small firms 
to compete for more contracts and grants, up to 4.5 percent 
rather than the current 3 percent of participating federal 
agency extramural research budgets.

Legislative History

    H.R. 4783 was introduced by Chairman Steve Chabot on March 
17, 2016. On March 2, 2016, the Committee held a hearing on the 
SBIR and STTR programs titled ``Commercializing on Innovation: 
Reauthorizing the Small Business Innovation Research and Small 
Business Technology Transfer Programs.'' On March 8, 2016, the 
Subcommittee on Contracting and Workforce held a field hearing 
in Lynn, Massachusetts on the programs titled ``Commercializing 
on Innovation: Reauthorizing the Small Business Innovation 
Research and Small Business Technology Transfer Programs Part 
II.'' On March 23, 2016, the Committee met in open session and 
ordered H.R. 4783 reported as amended by voice vote.
    A provision to reauthorize the SBIR and STTR programs for 
five years was included in Section 1834 of the conference 
report for S. 2943, the Fiscal Year 2017 National Defense 
Authorization Act, which was agreed to by the House on December 
2, 2016 by a vote of 375-34 (Roll Call No. 600). The conference 
report was then agreed to by the Senate on December 8, 2016 by 
a vote of 92-7. On December XX, 2016, it was signed by the 
President and became Pub. L. No. 114-XX.\18\
---------------------------------------------------------------------------
    \18\H.R. 4783 was included in S. 2936. At the time of this report's 
filing on December 20, 2016, S. 2936 had been presented to the 
President for his signature but had not yet been signed.
---------------------------------------------------------------------------

                  SCORE FOR SMALL BUSINESS ACT OF 2016

                              (H.R. 4788)

Summary

    H.R. 4788 would reauthorize the SCORE program for Fiscal 
Years 2017-2018, modify the program requirements with respect 
to program volunteers, program plans, goals and reporting, and 
outline privacy requirements pertaining to the disclosure of 
businesses participating in the program.

Legislative History

    H.R. 4788 was introduced on March 17, 2016 by 
Representative Alma Adams. The Subcommittee on Economic Growth, 
Tax and Capital Access held a hearing on February 2, 2016 on 
the Small Business Administration's entrepreneurial development 
programs titled ``SBA Management Programs: Oversight of SBA's 
Entrepreneurial Development Offices.'' On March 23, 2016, the 
Committee reported, as amended, H.R. 207, Developing the Next 
Generation of Small Businesses Act of 2016, which reauthorized 
the SCORE program for Fiscal Years 2016-2017. Title III of H.R. 
207 was based on H.R. 4788. H.R. 4788 was subsequently included 
in Section 1851 and 1852 of Title XVIII of H.R. 4909, the 
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 
2017, which passed the House on May 18, 2016 by a vote of 277-
147 (Roll Call No. 216). These provisions were not included in 
S. 2943, the NDAA for FY 2017. No further action was taken on 
H.R. 4788.

                CELEBRATING NATIONAL SMALL BUSINESS WEEK

                             (H. RES. 702)

Summary

    H. Res. 702 celebrates the contributions of small 
businesses and entrepreneurs in every community in the United 
States during ``National Small Business Week,'' beginning on 
May 1 through May 7, 2016.

Legislative History

    H. Res. 702 was introduced by Chairman Steve Chabot on 
April 26, 2016 and referred to the Committee on Small Business. 
No further action was taken on this legislation in the House.

          IMPROVING SMALL BUSINESS CYBER SECURITY ACT OF 2016

                              (H.R. 5064)

Summary

    H.R. 5064 allows the Small Business Administration's Small 
Business Development Centers program to advise small businesses 
on cyber security issues.

Legislative History

    H.R. 5064 was introduced on April 26, 2016 by 
Representative Richard Hanna. The bill was reported, as 
amended, by the Committee on Homeland Security on July 1, 2016. 
H.R. 5064 was subsequently included in H.R. 4909, the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2017, 
which passed the House on May 18, 2016 by a vote of 277-147 
(Roll Call No. 216). On September 21, 2016, H.R. 5064 was also 
considered on the House floor under suspension of the Rules and 
passed by voice vote.
    Most of the provisions of H.R. 5064 were included in 
Sections 1841-1844 of the conference report for S. 2943, the FY 
2017 NDAA, which was agreed to by the House on December 2, 2016 
by a vote of 375-34 (Roll Call No. 600). The conference report 
was then agreed to by the Senate on December 8, 2016 by a vote 
of 92-7. On December XX, 2016, it was signed by the President 
and became Pub. L. No. 114-XX.\19\
---------------------------------------------------------------------------
    \19\H.R. 5064 was included in S. 2936. At the time of this report's 
filing on December 20, 2016, S. 2936 had been presented to the 
President for his signature but had not yet been signed.
---------------------------------------------------------------------------

     PUERTO RICO OVERSIGHT, MANAGEMENT, AND ECONOMIC STABILITY ACT

                              (H.R. 5278)

Summary

    H.R. 5278 is legislation that institutes fiscal and 
economic reforms to address the fiscal crisis in Puerto Rico.

Legislative History

    H.R. 5278 was introduced on May 18, 2016 by Representative 
Sean Duffy. The bill was referred to the Committees on Natural 
Resources, Judiciary, Education and Workforce, and Small 
Business. On May 25, 2016, the Committee on Small Business 
waived jurisdiction to H.R. 5278 by exchange of letters with 
the Committee on Natural Resources to expedite consideration of 
the legislation on the House floor. On June 9, 2016, H.R. 5278 
passed the House by a vote of 291-127 (Roll Call No. 288). S. 
2328, which was identical to H.R. 5278, passed the Senate by a 
vote of 68-30 on June 29, 2016. S. 2328 was signed by the 
President on June 30, 2016 and became Pub. L. No. 114-187.

                 RECOGNIZING A SMALL BUSINESS SATURDAY

                             (H. RES. 886)

Summary

    H. Res. 886 recognizes November 26, 2016 as ``Small 
Business Saturday'' and supports efforts to increase awareness 
of the value of locally owned small businesses.

Legislative History

    H. Res. 886 was introduced on September 22, 2016 by 
Chairman Steve Chabot and referred to the Committee on Small 
Business. No action was taken on this legislation.

                           OVERSIGHT SUMMARY

    Clause 1(d) of rule XI of the Rules of the House of 
Representatives for the 114th Congress requires that each 
standing Committee, not later than January 2 of each odd-
numbered year, shall submit to the House a report on the 
activities of that committee, including a separate section 
summarizing the oversight activities of that committee. The 
report shall also include a delineation of any hearings held 
pursuant to clauses 2(n), (o), or (p) of rule XI, related to 
waste, fraud, and abuse in government programs.
    Part A of this section describes the hearings held in full 
Committee. Part B of this section describes the hearings held 
in the subcommittees. Part C of this section addresses the 
hearings that relate to clauses 2(n), (o), or (p) of rule XI. 
Part D of this section reproduces the Committee's oversight 
plan and the actions taken related to that plan, including the 
actions required by clause 1(d)(2)(C)-(D) of rule XI.

                                 PART A

                        Full Committee Hearings


            HEARING: ``CONTRACTING AND THE INDUSTRIAL BASE''

    On February 12, 2015, the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Contracting and the Industrial Base.'' The hearing was 
the first of three hearings that examined the utilization of 
small businesses to support the industrial base. This hearing 
focused on: (1) surety bond issues; (2) the use of reverse 
auctions; (3) failure to properly use a two-step procurement 
process for design build contracts; (4) the use of joint 
ventures and teams; and (5) the nonmanufacturer rule.
    The witnesses for the hearing were: Mr. Randall D. Gibson, 
President, Whitesell-Green, Inc., Pensacola, FL, on behalf of 
the Associated General Contractors of America; Mr. James P. 
Hoffman, PE, President, Summer Consultants Inc., McLean, VA, on 
behalf of the American Council of Engineering Companies; Mr. 
John McNerney, General Counsel, Mechanical Contractors 
Association of America, Rockville, MD; and Mr. Andrew Hunter, 
Director, Defense-Industrial Group and Senior Fellow, Center 
for Strategic and International Studies, Washington, DC.
    Mr. Gibson focused on the construction industry's 
participation in the federal marketplace. He testified that 
reverse auctions do not provide the savings that the promoters 
of the process believe they make. He voiced concerns about the 
illusory assets used to back surety bonds, and urged Congress 
to adopt legislation to prevent fraud in the individual surety 
market. Mr. Hoffman asked for the restriction of reverse 
auctions through Rep. Richard Hanna's (R-NY) legislation, H.R. 
2751. In addition, he said that the current joint venture 
framework only looks to past performance, and inhibits new 
joint ventures from participating in the federal marketplace. 
Mr. McNerney also expressed support for surety bond reform. He 
praised the Committee's efforts to limit the use of the non-
manufacturer rule in construction services contracts. Mr. 
Hunter noted sequestration's effect on defense procurement. 
Specifically, he said that because of the fragile nature of 
small businesses, they are even more sensitive to the changes 
in the federal marketplace caused by sequestration. He stated 
that since 2009, research and development contract obligations 
have decreased by 39 percent.

   HEARING: ``THE SBA BUDGET FOR FY 2016: DOES IT MEET THE NEEDS OF 
                     AMERICA'S SMALL BUSINESSES?''

    On February 25, 2015, the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``The SBA Budget for FY 2016: Does It Meet the Needs of 
America's Small Businesses?'' The hearing examined the Small 
Business Administration budget for Fiscal Year 2016.
    The sole witness at the hearing was the Hon. Maria 
Contreras-Sweet, Administrator, Small Business Administration, 
Washington, DC.
    The Administrator noted that the budget request was 
significantly lower for FY 2016 due to the absence of subsidies 
for any of the SBA's major lending programs and thus did not 
represent any reduction in services to small business owners. 
She explained the efforts to expand outreach to small 
businesses through new initiatives created by the SBA. Finally, 
the Administrator promised to continue efforts at modernizing 
the SBA and asserted that the budget request would be 
sufficient to implement her reforms.

HEARING: ``BUILDING AN OPPORTUNITY ECONOMY: THE STATE OF SMALL BUSINESS 
                         AND ENTREPRENEURSHIP''

    On March 4, 2015, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Building an Opportunity Economy: The State of Small 
Business and Entrepreneurship.'' The purpose of the hearing was 
to receive testimony on the health and vibrancy of the American 
economy, particularly as it pertains to the creation, 
sustainability, and future growth of small businesses. The 
hearing set the stage for future discussion within the 
Committee in an effort to narrow the focus to the most 
pertinent obstacles hindering growth, and to tackle the most 
egregious impediments to business formation, job creation, and 
economic growth, all of which contribute to lifting up American 
families.
    The witnesses for the hearing were: Jon Clifton, Esq., 
Partner and Managing Director, Government Division, Gallup, 
Inc., Washington, DC; Ms. Cynthia Kay, Owner and President, 
Cynthia Kay and Company, Grand Rapids, MI, testifying on behalf 
of the National Small Business Association; David Burton, Esq., 
Senior Fellow in Economic Policy, The Heritage Foundation, 
Washington, DC; and Ms. Elana Fine, Managing Director, Dingman 
Center for Entrepreneurship, Robert H. Smith School of 
Business, University of Maryland, College Park, MD.
    Mr. Clifton began the hearing by testifying that creating 
good jobs, and the subsequent rebuilding of the United States' 
middle class, hinges on the success and failure of small 
businesses and startups. Existing small businesses are 
experiencing headwinds caused primarily by challenging business 
realities, the overall economy, and a concern about government 
regulations. Dr. Burton's written testimony outlined 97 
separate legislative actions Congress could take that would 
improve the economy and help small firms expand. His oral 
testimony focused mainly on the hurdles faced by small firms 
found in poor tax policy, inadequate access to capital, and 
burdensome federal regulations. Ms. Kay outlined specific tax 
uncertainties, regulatory burdens, and cybersecurity concerns 
that have hindered her small company's growth. Ms. Fine 
stressed the importance of teaching entrepreneurship to younger 
Americans in an effort to help them better prepare for the 
realities of the American economy.

       HEARING: ``TANGLED IN RED TAPE: NEW CHALLENGES FOR SMALL 
                            MANUFACTURERS'''

    On March 18, 2015, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Tangled in Red Tape: New Challenges for Small 
Manufacturers.'' The hearing examined the effects of federal 
regulations on small manufacturers and agency compliance with 
the Regulatory Flexibility Act.
    Small manufacturers are affected directly and indirectly by 
a variety of regulatory requirements from a number of agencies. 
According to a 2014 survey, 88 percent of manufacturers 
identified federal government regulations as a recent and 
future challenge.
    Witnesses on the only panel were: Ms. Cynthia Reichard, 
Executive Vice President, Arylessence, Marietta, GA, on behalf 
of the International Fragrance Association of North America; 
Ms. Janis Herschkowitz, President & CEO, PRL Inc., Cornwall, 
PA, on behalf of the American Foundry Society; Viktor Anderson, 
P.E., Director of Engineering, Structural Concepts, Muskegon, 
MI, on behalf of the Air-Conditioning, Heating and 
Refrigeration Institute; and James Goodwin, Esq., Senior Policy 
Analyst, Center for Progressive Reform, Washington, DC.
    At the hearing, a panel of private sector witnesses 
discussed challenges small manufacturers were facing with 
several rules in the development and implementation stages. Ms. 
Reichard explained how the Occupational Safety and Health 
Administration (OSHA) hazard communication standard has been 
costly and difficult to implement because it deviated from 
other countries' regulatory standards even though the purpose 
of the rule was to conform to a globally harmonized system of 
classifying and labeling chemicals. For example, unlike Canada 
and the European Union, OSHA did not provide any exemption for 
small bottles from the labeling requirements. Ms. Herschkowitz 
discussed how OSHA's proposed rule to amend its standard for 
occupational exposure to respirable crystalline silica could 
create serious safety problems in a foundry by prohibiting 
certain work practices like dry sweeping in favor of wet 
vacuuming, which could lead to an explosion. She also noted 
that OSHA had relied on an outdated Small Business Regulatory 
Enforcement Fairness panel. Mr. Anderson explained how 
difficult it will be for small manufacturers to comply with the 
Department of Energy's recently finalized energy conservation 
standard for commercial refrigeration equipment and the 
Environmental Protection Agency's proposed rule to phase out 
ozone depleting chemicals, including refrigerants, because they 
operate at cross-purposes to one another. Finally, Mr. Goodwin 
stated that regulations were essential for safeguarding the 
public and provide benefits to small businesses.

  HEARING: ``TAX REFORM: ENSURING THAT MAIN STREET ISN'T LEFT BEHIND''

    On April 15, 2015, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Tax Reform: Ensuring that Main Street Isn't Left 
Behind.'' The hearing focused on the need for and the potential 
economic benefits of comprehensive tax reform, with a 
particular focus on how changes to the tax code will enable 
small enterprises to create jobs and build the economy.
    The witnesses for the hearing were: Mr. Scott Lipps, Owner, 
Sleep Tite Mattress Factory, Franklin, OH, on behalf of the 
National Federation of Independent Business; Mr. Pete Sepp, 
President, National Taxpayers Union, Alexandria, VA; Mr. Dan 
McGregor, Chairman of the Board, McGregor Metalworking 
Companies, Springfield, OH, on behalf of the S-Corporation 
Association of America; and Eric Toder, Ph.D., Institute Fellow 
and Co-director, Tax Policy, Urban Institute, Washington, DC.
    Mr. Lipps began the hearing by testifying that small 
business owners work in the community, hire in the community, 
and live in the community. He stated that in order for him to 
serve his employees and his community, we must have lower tax 
rates, fewer regulations, and a less confusing and complex tax 
code. Mr. Sepp detailed wide-ranging research from various 
sources around the country that the level of taxation, along 
with its complexity, is a drain on the American economy. He 
urged Congress to consider the impact of tax laws and their 
administration on the entrepreneurial spirit of the small 
business owner. Mr. McGregor expressed the need for Congress to 
not only consider corporate tax reform, but also the need to 
reform the individual tax regime as well. He testified that 
because the vast majority of small businesses are organized as 
pass through entities (where business profits are passed 
through to the owners who pay the required tax on their 
individual returns), a corporate only approach would put these 
small firms at a disadvantage to those organized in other ways. 
Dr. Toder outlined the macroeconomic effects of a complex and 
confusing tax code.

HEARING: ``SMALL BUSINESS, BIG THREAT: PROTECTING SMALL BUSINESSES FROM 
                            CYBER ATTACKS'''

    On April 22, 2015, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Small Business, Big Threat: Protecting Small 
Businesses from Cyber Attacks.'' The hearing examined the 
current state of cyber security for small firms and steps that 
can strengthen their efforts in information protection.
    Information technology is a key conduit for modern commerce 
exchanges among small businesses. However, small businesses 
have seen an alarming rise in the number of cyber attacks, 
which has the potential for a devastating impact on both 
businesses and consumers. According to a recent study, nearly 
half of small businesses have been victims of a cyber attack. 
Startlingly, the cost of a cyber attack on small businesses has 
more than doubled in the last year.
    Witnesses on the panel were: Mr. Steve Grobman, Intel 
Fellow, Intel Security Group, Intel Corporation, Santa Clara, 
CA; Mr. Todd McCracken, President, National Small Business 
Association, Washington, DC; Mr. B. Dan Berger, President and 
Chief Executive Officer, National Association of Federal Credit 
Unions, Arlington, VA; and Jane LeClair, Ph.D., Chief Operating 
Officer, National Cybersecurity Institute, Excelsior College, 
Washington, DC.
    At the hearing, the panel of witnesses discussed the 
potential cyber threats against small businesses and the best 
practices for small business in utilizing new technology for 
better protection against security threats. They provided 
detailed analysis of new and developing technologies available 
to small businesses and the complexity of cyber attacks. Mr. 
Grobman provided an overview of the threat landscape and its 
implications for small business, as well as the private 
sector's role in providing technology solutions to small 
business. Mr. McCracken explained the financial impact that 
cyber attacks have on small business and the increasing 
frequency of these attacks. Mr. Berger stressed the importance 
of protecting consumer data, while also suggesting reasonable 
and equitable ways of addressing the need for reducing the 
costs of breaches from fraudulent credit card use. Finally, Dr. 
LeClair noted small businesses' need for an affordable cyber 
security option that provides a targeted plan and basic 
training for owners.

   HEARING: ``BRIDGING THE SMALL BUSINESS CAPITAL GAP: PEER-TO-PEER 
                               LENDING''

    On May 13, 2015, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Bridging the Small Business Capital Gap: Peer-to-Peer 
Lending,'' which examined the rise of peer-to-peer (P2P) 
lending platforms. These platforms are designed to utilize 
telecommunications technologies to offer loans not being made 
by banks and other conventional lenders.
    The witnesses were: Rajkamal Iyer, Ph.D., Associate 
Professor, Sloan School of Management, MIT, Cambridge, MA; Mr. 
Sam Hodges, Co-Founder and Managing Director, Funding Circle, 
San Francisco, CA; Mr. Zachary Green, CEO, MN8 Foxfire, 
Cincinnati, OH; and Mr. Peter Renton, Publisher, Lend Academy, 
Denver, CO.
    The witnesses provided testimony on how reductions in 
conventional avenues for borrowing have been filled by P2P 
lenders and how this greatly increases access to capital for 
small businesses. Professor Iyer testified that soft 
information (anything outside a credit score and tax return) is 
allowing unsophisticated investors to predict default rates 
more accurately than in conventional loans. Mr. Hodges noted 
that the regulatory and legal complexities of operating a P2P 
platform in the United States and indicated that Congress might 
want to consider the United Kingdom's model to foster more P2P 
lenders to operate here and infuse small firms with debt-
capital. Mr. Green stated that without receiving a P2P loan he 
would have been unable to continue to operate his business and 
that P2P lenders are a faster and safe alternative for access 
to capital. Mr. Renton discussed the evolution of P2P lending 
and noted that little fraud was occurring in the market and 
that continued growth would be beneficial for small firms.

  HEARING: ``ACROSS TOWN, ACROSS OCEANS: EXPANDING THE ROLE OF SMALL 
                     BUSINESS IN GLOBAL COMMERCE''

    On May 20, 2015, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Across Town, Across Oceans: Expanding the Role of 
Small Business in Global Commerce.'' The hearing examined the 
vital ongoing trade negotiations, the Trade Priorities and 
Accountability Act of 2015 (TPA), and the impact of United 
States trade policy on small businesses.
    Engagement in international trade is a cornerstone of a 
strong and expanding 21st century economy. Currently, the 
United States is involved in negotiations on some of the most 
comprehensive trade agreements in history. The successful 
completion of these agreements will strengthen U.S. economic 
growth, add American jobs, and increase U.S. exports to 
countries around the world.
    Witnesses on the panel were: Mr. Brian Bieron, Executive 
Director, eBay Global Public Policy Lab, Washington, DC; Mr. 
Dyke Messinger, President, Power Curbers, Inc., Salisbury, NC; 
Mr. Michael Stanek, Vice President and Chief Financial Officer, 
Hunt Imaging, LLC, Berea, OH; and Timothy Brightbill, Esq., 
Partner, Wiley Rein, LLP, Washington, DC.
    At the hearing, the witnesses discussed United States trade 
policy and its implications for small businesses. They offered 
first-hand accounts of the hurdles small businesses face when 
engaging in global commerce, and the importance of 
strengthening trading partnerships to provide small business 
growth. Mr. Bieron provided an in-depth analysis explaining the 
successes of small businesses that utilize supply chain 
operations of large multi-national companies, as well as 
observed how the global trading system is rapidly changing to 
allow greater trade between small businesses. Mr. Messinger 
stressed that foreign markets are critical for small 
businesses. He also noted that the future growth of his 
business is heavily dependent upon opening new markets and 
leveling the playing field. Mr. Stanek discussed the challenges 
small businesses face when attempting to export and called for 
improved and streamlined assistance programs. Finally, Mr. 
Brightbill agreed that trade agreements are generally 
beneficial for small businesses but opined that there are 
significant shortcomings in the Trans-Pacific Partnership and 
TPA.

  HEARING: ``THE ROAD AHEAD: SMALL BUSINESSES AND THE NEED FOR A LONG-
             TERM SURFACE TRANSPORTATION REAUTHORIZATION''

    On June 3, 2015, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``The Road Ahead: Small Businesses and the Need for a 
Long-Term Surface Transportation Reauthorization.'' The purpose 
of the hearing was to receive testimony on the role of small 
businesses in the development and use of the nation's 
infrastructure. The hearing focused on small firm participation 
in the surface transportation construction industry and 
examined how a robust and efficient national infrastructure 
assists small businesses in getting their goods and services to 
market.
    The witnesses for the hearing were: Mr. William Schmitz, 
Vice President, Sales and Quality Control, Gernatt Asphalt 
Company, Collins, NY, on behalf of the National Stone, Sand, 
and Gravel Association; Mr. Don Shilling, President, General 
Equipment and Supplies, Fargo, ND, on behalf of the Associated 
Equipment Distributors; Mr. Matt Davis, Director, Build Our New 
Bridge Now Coalition, Cincinnati, OH; and Jonathan Gifford, 
Ph.D., Professor, School of Public Policy, George Mason 
University, Arlington, VA.
    Mr. Schmitz stated that the absence of a long-term surface 
transportation reauthorization has led to uncertainty in his 
customer base causing him to withhold investment in plants and 
new machinery for the foreseeable future. He said it is 
increasingly difficult to do long range workforce planning due 
to uncertain demand. Mr. Shilling added that the detrimental 
impact of the uncertainty surrounding the Highway Trust Fund is 
not unique to his business and that as Congress delays 
addressing the country's infrastructure needs, the public is 
paying the price in lost productivity and vehicle repairs. Mr. 
Davis discussed the need for a new Brent Spence Bridge in 
downtown Cincinnati, Ohio to demonstrate the importance of 
long-term surface transportation reauthorization to local 
communities. He added that for small businesses to stay afloat, 
they need reliable roads, bridges, waterways, airports and 
railways to move employees and goods from place to place as 
safely as possible. Dr. Gifford also stressed the importance of 
long-range planning and execution of infrastructure projects 
and their significance to the overall economy.

   HEARING: ``CRUDE INTENTIONS: THE UNTOLD STORY OF THE BAN, THE OIL 
               INDUSTRY, AND AMERICA'S SMALL BUSINESSES''

    On June 17, 2015, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing, 
titled ``Crude Intentions: The Untold Story of the Ban; the Oil 
Industry; and American's Small Businesses,'' on the impact of 
lifting the ban on crude oil exports. Unconventional oil 
production in the United States is increasing at an 
unprecedented rate. This unanticipated supply of crude oil is 
having a significant impact on the prediction by many experts 
that the United States passed its peak for domestic oil and 
natural gas production. The rapid advancement in technological 
capabilities and new trends in the petroleum market have made 
it economical to produce significant quantities of oil and 
natural gas from unconventional fields. Additionally, proven 
domestic reserves--and their production potential--establish 
the United States energy position as one of abundance.
    The witnesses for the hearing were: Dr. Kenneth B. Medlock 
III, James A. Baker, III, and Susan G. Baker Fellow in Energy 
and Resource Economics, Senior Director, Center for Energy 
Studies, Rice University's Baker Institute for Public Policy, 
Houston, TX; Mr. Dale Leppo, Chairman, Leppo Group, Tallmadge, 
OH, on behalf of the Energy Equipment and Infrastructure 
Alliance; Mr. Rory McMinn, President and Managing Director, 
Read & Stevens, Inc., Roswell, NM; and Mr. Tyson Slocum, Energy 
Program Director, Public Citizen, Washington, DC.
    Dr. Medlock referenced a recent report by the Center for 
Energy Studies. The study stated lifting the ban would raise 
United States crude oil prices back toward parity with prices 
for internationally traded crude oils of similar quality, 
increase upstream and midstream investment, and improve U.S. 
energy security. He also went on to say that with the ban in 
place, producers are faced with either shutting in some light 
oil production or discounting the price of their output to 
encourage refineries to reduce their runs of medium crude oils, 
instead running additional light oil. While many associate the 
oil industry with large business, Mr. Leppo's small family-
owned business in Ohio rents and sells construction equipment 
to those who work in the Utica Shale bed. As Dr. Medlock 
explained, the drop in the price of oil led to rig closures, 
and Mr. Leppo's company had to put many of their growth 
initiatives on hold in 2015. Mr. McMinn's company is a small 
oil and gas production company in Roswell, New Mexico. He 
discussed how the oil ban hurt small businesses and also 
greatly diminishes state government revenue. Mr. Slocum 
testified that increased oil demand domestically needs domestic 
supply. He said removing the ban will increase gas prices and 
lifting the ban has non-existent or minimal foreign policy 
benefits.

HEARING: ``THE CALM BEFORE THE STORM: OVERSIGHT OF SBA'S DISASTER LOAN 
                               PROGRAM''

    On July 8, 2015, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``The Calm Before the Storm: Oversight of SBA's Disaster 
Loan Program.'' The hearing examined challenges faced by the 
SBA in response to Hurricane ``Superstorm'' Sandy, including a 
discussion of a September 2014 report by the United States 
Government Accountability Office (GAO), as well as a discussion 
of the Small Business Administration's implementation of the 
Small Business Disaster Response and Loan Improvements Act of 
2008.
    The witness on the first panel was Representative Chris 
Smith (R-NJ). The witnesses on the second panel were: Mr. 
William B. Shear, Director, Financial Markets and Community 
Investment, United States Government Accountability Office, 
Washington, DC; and Mr. James Rivera, Associate Administrator, 
Office of Disaster Assistance, United States Small Business 
Administration, Washington, DC.
    The witnesses provided testimony on the SBA's response to 
Hurricane Sandy as well as the GAO's report which found that 
the SBA was not prepared to cope with the aftermath of the 
disaster despite improvements mandated within the 2008 Small 
Business Disaster Response and Loan Improvements Act. Rep. 
Smith highlighted his constituents' problematic experience with 
SBA's disaster loan programs after Hurricane Sandy. Mr. Shear 
noted the GAO's findings that SBA did not meet its timeliness 
goal in processing loan applications after Hurricane Sandy, 
that loan withdrawal and cancellation rates were higher with 
Sandy than other disasters, and that SBA failed to implement 
three guaranteed disaster loan programs required by law. Mr. 
Rivera recounted SBA's recent efforts to implement the GAO and 
SBA Office of Inspector General recommendations and improve the 
agency's Office of Disaster Assistance internal processes.

   HEARING: ``TAKING FLIGHT: SMALL BUSINESS UTILIZATION OF UNMANNED 
                               AIRCRAFT''

    On July 15, 2015, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Taking Flight: Small Business Utilization of Unmanned 
Aircraft.'' The hearing examined small business utilization of 
unmanned aircraft, commonly referred to as drones, for 
commercial activities.
    Currently, commercial operations of unmanned aircraft are 
very limited; however, the Federal Aviation Administration 
(FAA) is working towards safely integrating them into the 
national airspace system. On a case-by-case basis, the FAA is 
authorizing low-risk commercial unmanned aircraft systems (UAS) 
operations. The FAA also has proposed a rule to permit small 
unmanned aircraft (those weighing 55 pounds or less) to operate 
for non-hobby, non-recreational purposes. Once the regulation 
is finalized, the FAA expects that small businesses will 
conduct the majority of commercial operations.
    Witnesses on the only panel were: Mr. Brian Wynne, 
President and Chief Executive Officer, Association for Unmanned 
Vehicle Systems International, Arlington, VA; Mr. Mike Gilkey, 
Chief Executive Officer and Director of Flight Operations, 3D 
Aerial Solutions, LLC, Dayton, OH; Mr. Brian Streem, Chief 
Executive Officer and Cofounder, AeroCine, Brooklyn, NY; and 
Tim McLain, Ph.D., Professor of Mechanical Engineering and 
Director of the Center for Unmanned Aircraft Systems, Brigham 
Young University, Provo, UT.
    At the hearing, the witnesses discussed the kinds of UAS 
operations that are being conducted, the FAA's current 
exemption process, and the effects the proposed rule could have 
on small business UAS operators. Mr. Wynne discussed how UAS 
allow businesses to execute dangerous and difficult tasks, such 
as inspecting pipelines and surveying bridges, safely and 
efficiently. Mr. Gilkey described the challenges that startup 
companies like 3D Aerial Solutions, which is conducting aerial 
imaging of crops, are facing. Mr. Streem noted that 
technological advances are outpacing the FAA's rulemaking 
process and expressed concern that the FAA's rule does not 
account for the rapidly changing technological capabilities of 
UAS. Finally, Dr. McLain stated that to enable and accelerate 
the growth of the industry, and ensure small business 
participation, regulatory barriers to entry must be kept low.

    HEARING: ``HOW TAX COMPLIANCE OBLIGATIONS HINDER SMALL BUSINESS 
                                GROWTH''

    On July 22, 2015, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``How Tax Compliance Obligations Hinder Small Business 
Growth.'' The hearing focused on the tax compliance problems 
facing small firms and examined the effectiveness of actions 
taken by the Internal Revenue Service (IRS) intended to reduce 
those costs.
    The witnesses for the hearing were: Mr. Christopher Mihm, 
Managing Director, Strategic Issues, United States Government 
Accountability Office, Washington, DC; Donald Williamson, Esq., 
Executive Director, Kogod Tax Center, American University, 
Washington, D.C.; Troy Lewis, CPA, Vice President, Heritage 
Bank, Draper, UT, on behalf of the American Institute of 
Certified Public Accountants; Les Vitale, CPA, Partner, Local 
Markets Group, McGladrey, LLP, Boston, MA; and Stephen 
Mankowski, CPA, Partner, EP Caine & Associates, LLC, Bryn Mawr, 
PA.
    Mr. Mihm outlined the findings of a Committee-requested 
Government Accountability Office (GAO) report describing the 
characteristics of the small business population; how those 
attributes affect the tax compliance burden; and how the IRS 
integrates the costs of small business compliance into its 
decision-making. Mr. Mihm pointed to a section of the report 
that outlined 25 recommendations the GAO has made to the IRS 
over the past few years that have the potential to reduce the 
compliance burden for small firms and stated that none of those 
have been acted upon by the IRS. Mr. Williamson testified that 
easing the rules to allow more small firms to adopt the cash 
accounting method of accounting would have a positive effect on 
the strain of compliance for small companies. Mr. Lewis 
addressed the exceptionally poor IRS service encountered by 
taxpayers and tax preparers when seeking assistance. Mr. Vitale 
outlined several outdated, complex and duplicative forms that 
the IRS could streamline in order to reduce the paperwork 
burden. Mr. Mankowski testified that some of the pilot programs 
designed to facilitate greater voluntary compliance initiated 
by the IRS have been poorly designed and poorly run, leading 
them to have a contradictory outcome than intended.

FIELD HEARING IN FLORIDA: ``RESTRICTED ACCESS AT BISCAYNE NATIONAL PARK 
AND IMPLICATIONS FOR FISHERMEN, SMALL BUSINESSES, THE LOCAL ECONOMY AND 
                             ENVIRONMENT''

    On August 3, 2015, the Committee on Small Business and the 
Committee on Natural Resources met at the William F. Dickinson 
Community Center in Homestead, FL for a hearing titled 
``Restricted Access at Biscayne National Park and Implications 
for Fishermen, Small Businesses, the Local Economy and 
Environment.'' The hearing examined the National Park Service's 
(NPS) final general management plan (GMP) for Biscayne National 
Park.
    Biscayne National Park, which is south of Miami, is a 
marine park which is managed by the NPS. The park primarily 
consists of submerged land which includes sandy shoals, coral 
reefs, keys and islands, and mostly undeveloped mangrove 
shoreline. It is used for a variety of commercial and 
recreational activities, including boating, fishing, scuba 
diving, snorkeling, and observing flora and fauna. Fishing in 
the park's waters is regulated under Florida state law, and 
state regulations are enforced by the NPS and the Florida Fish 
and Wildlife Conservation Commission (FWC) in the park. Under 
the final GMP, a 10,500 acre marine reserve zone would be 
created where no recreational or commercial fishing would be 
allowed.
    Witnesses on the panel were: Mr. Carl Liederman, Owner, 
Captain Harry's Fishing Supply, Miami, FL; Mr. Brian Carlstrom, 
Superintendent, Biscayne National Park, National Park Service, 
United States Department of the Interior, Homestead, FL; Ms. 
Jessica McCawley, Director, Division of Marine Fisheries 
Management, Florida Fish and Wildlife Conservation Commission, 
Tallahassee, FL; Jerry Ault, Ph.D., Professor, University of 
Miami, Miami, FL; Mr. Bouncer Smith, Owner, Bouncer's Dusky 33 
Fishing Charters, Miami, FL; Mr. Ernie Piton, President, 
Florida Keys Commercial Fishermen's Association, Key Largo, FL; 
Mr. Bryan Boyd, Owner, Ocean Blue Yacht Sales, Stuart, FL; Mr. 
Scott Salyers, Fishing Group Publisher, Bonnier Corporation, 
Palmetto Bay, FL; and Mr. Jimbo Thomas, Captain, Thomas Flyer, 
Miami, FL.
    Mr. Liederman discussed how the closure of waters would 
negatively affect small businesses that supply fishermen and 
how the NPS disregarded recommendations to improve the park's 
fisheries resources that were developed by small stakeholders 
involved in a 2004 working group. Mr. Carlstrom explained how 
the NPS developed the fishery management plan and the GMP and 
why the NPS believes a marine reserve zone must be implemented. 
Ms. McCawley discussed the FWC's opposition to the final GMP 
and the marine reserve zone, which it believes should not be 
established unless all other less restrictive fishery 
management actions have been attempted and evaluated. Mr. Ault 
stated that marine reserve zones have been shown to be an 
effective management tool to improve coral reefs in Florida. 
Mr. Smith discussed his support of the marine reserve zone as a 
way to save and improve reef fish populations. Mr. Piton said 
he is concerned that the marine reserve zone will increase 
pressure on fish populations outside the zone, particularly in 
the Upper Keys area. Mr. Boyd described how decreased access to 
the park would negatively affect boat dealers who sell boats to 
recreational boaters and fishermen. Mr. Salyers noted that the 
GMP treats user groups differently even though all user groups 
could affect the park's reef; fishermen will be banned from 
fishing in the marine reserve zone, but divers and snorkelers, 
who could damage the reef, would still be allowed to recreate 
in the zone. Mr. Thomas, who fishes in the park's waters, 
discussed his concern that the NPS is moving forward with the 
marine reserve zone even though fish stock assessments 
conducted by the National Oceanic and Atmospheric 
Administration have found that fish stocks in the park are in 
excellent condition.

 HEARING: ``THE EMV DEADLINE AND WHAT IT MEANS FOR SMALL BUSINESSES'''

    On October 7, 2015 in the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``The EMV Deadline and What it Means for Small 
Businesses.'' The hearing was the first of two hearings on the 
deadline for the October 1, 2015 shift from point-of-sale (POS) 
terminals to an Europay, Mastercard, Visa (EMV) chip system. 
The upgraded technology is designed to enhance protection 
against cybercrime and fraud. However, many small businesses 
are unprepared for the new technology. These businesses may be 
more vulnerable to cyber threats and could be responsible for 
certain incidents of fraud. A July 2015 study found that less 
than 49 percent of small businesses are aware of the October 1, 
2015 date and liability shift.
    The witnesses for the hearing were: Ms. Stephanie Ericksen, 
Vice President, Risk Products, Visa Inc., Foster City, CA; Mr. 
Scott Talbott, Senior Vice President, Government Affairs, ETA 
Electronic Transactions Association, Washington, DC; Mr. Paul 
Weston, President and CEO, TCM Bank, N.A., Tampa, FL; and Ms. 
Jan N. Roche, President/CEO, State Department Federal Credit 
Union, Alexandria, VA, on behalf of the National Association of 
Federal Credit Unions.
    Ms. Ericksen explained Visa's outreach efforts for the EMV 
transition as well as their accomplishments so far with the 
transition. There were 6.5 times more Visa chip cards in 
circulation in October 2015 than from the year before, and 4.7 
times more small merchants have chip-enabled devices than the 
same time the year before. Mr. Talbott discussed the Electronic 
Transaction Association's commitment to consumer data security 
and that EMV credit cards provide a much needed improvement. He 
also discussed some of the logistical difficulties with the 
proposed ``chip and pin'' card system, which cannot be used for 
all mobile transactions. Mr. Weston addressed the EMV 
transition from the community bank perspective, highlighting 
small banks' inherent connection to their local communities as 
well as how proactive community banks have been during the 
transition. Ms. Roche provided an overview of the transition, 
including the issue of requiring the ``chip and pin'' format, 
credit union's battle against fraud, and potential legislative 
solutions to improve consumer data security.

  HEARING: ``THE EMV DEADLINE AND WHAT IT MEANS FOR SMALL BUSINESSES: 
                               PART II''

    On October 21, 2015 the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``The EMV Deadline and What it Means for Small 
Businesses: Part II.'' The hearing was the second of two 
hearings which dealt with the October 1, 2015 deadline for 
customers to shift point-of-sale (POS) terminals to an Europay, 
Mastercard, Visa (EMV) chip system. Failure to transition would 
shift liability for fraud from the card provider to the 
merchant if the customer was using a credit card with the EMV 
chip, but would maintain the current allocation of liability if 
the merchant had adopted the new technology or if the customer 
was using a credit card without the chip. The upgraded 
technology is designed to protect against cybercrime and fraud. 
Small businesses that have not installed the new technology 
will be more vulnerable to cyber threats and they will be held 
liable for certain incidents of fraud. A July 2015 study found 
that less than 49 percent of small businesses are aware of the 
October 1 deadline and liability shift.
    The witnesses for the hearing were: Ms. Jami Wade, Owner, 
Capitol City CORK and Provisions & Capitol City Cinema, 
Jefferson City, MO; Mr. Keith Lipert, Owner, Keith Lipert 
Gallery, Washington, DC, on behalf of the National Retail 
Federation; Mr. Jared Scheeler, Managing Director, The Hub 
Convenience Stores, Inc., Dickinson, ND, on behalf of the 
National Association of Convenience Stores; Mr. Art Potash, 
CEO, Potash Markets, Chicago, IL, on behalf of the Food 
Marketing Institute; and Ed Mierzwinski, Consumer Program 
Director and Senior Fellow, U.S. Public Interest Research 
Group, Washington, DC.
    Ms. Wade discussed her small business and the fact that 
credit card transactions are vital to her business model. She 
said the cost associated with upgrading the credit card 
terminals was worth the peace of mind to combat fraud. Mr. 
Lipert explained the cost and delays associated with the 
transition to new credit card terminals in his business. Mr. 
Scheeler testified that the transition to new terminals would 
be too costly for convenience stores that typically have low 
profit margins to begin with. He said it has cost him 
approximately $44,500 per store in order to comply. Mr. Potash 
said the upgrade for him cost roughly $1,000 per lane, which 
can be tough for a company like his that has never hit even 2 
percent profit margins. Mr. Mierzwinski outlined his preference 
for ``chip and pin'' cards over ``chip and sign.'' He said the 
transition to ``chip and sign'' has been pushed by the large 
credit card companies due in large part to the fact that those 
companies would make more money in the new system.

               HEARING: ``NATIONAL ENTREPRENEURS'' DAY''

    On November 17, 2015, the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``National Entrepreneurs' Day.'' The hearing highlighted 
the benefits of entrepreneurship to the American economy in 
conjunction with the introduction of H. Res. 511, a resolution 
introduced by Chairman Chabot that expresses support for 
designation of the third Tuesday in November as ``National 
Entrepreneurs' Day.'' The hearing examined methods utilized and 
cultivated by entrepreneurs to achieve prosperity, such as 
capitalizing on emerging industries and fostering innovation.
    The witnesses were: Mr. Chris Ostoich, Co-Founder and VP of 
Marketing, LISNR, Cincinnati, OH; Mr. Sam Zietz, CEO and 
Founder, Touchsuite, Boca Raton, FL; Mr. Drew Bartkiewicz, CEO 
and Founder, lettrs, Collinsville, CT; and Ms. Jen Pepper, CEO 
and Founder, PepperSprouts, West Newbury, MA.
    Mr. Ostoich testified about the importance of an 
entrepreneurial ecosystem the merges entrepreneurs, investors, 
and consumers in order to make a product scalable. Mr. Zietz 
noted that for small businesses two primary obstacles are tax 
complexities and regulatory burdens which act as a barrier for 
competing with larger companies. Mr. Barkietwicz stated while 
he was able to receive funding from a company interested in 
veteran startups, he felt the Small Business Administration's 
loan process needed to be reformed and updated. Ms. Pepper 
discussed the challenges involved for entrepreneurs who want to 
engage in exporting, as well as the need for increased 
intellectual property protection overseas.

    HEARING: ``ATTENTION NEEDED: MISMANAGEMENT AT THE SBA-- THE GAO 
                               FINDINGS''

    On January 6, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Attention Needed: Mismanagement at the SBA-- The GAO 
Findings.'' The hearing reviewed a report by the United States 
Government Accountability Office (GAO) that examined the 
overall management of the Small Business Administration (SBA or 
Agency). The report was a request by the former Chairman, Rep. 
Sam Graves, and the Ranking Member, Rep. Nydia M. Velazquez to 
examine various aspects of the SBA's management rather than 
individual programs of the Agency.
    The sole witness at the hearing was Mr. William B. Shear, 
Director Financial Markets and Community Investment, Government 
Accountability Office, Washington, DC.
    Mr. Shear testified that GAO found the SBA used strategic 
planning but failed to incorporate adequate program evaluations 
into the strategic planning process. GAO also found that the 
SBA has not completed an adequate human capital management plan 
which is particularly troubling given the age of the Agency's 
workforce. Mr. Shear explained that the lack of an adequate 
human capital plan is compounded by the SBA's convoluted and 
overlapping agency structure. He related that GAO's examination 
uncovered inadequate enterprise risk management--a serious 
problem given the SBA's management of a $100 billion loan 
portfolio. Mr. Shear explained that the SBA has about 165 
standard operating procedures (guidance documents), which are 
not regularly updated or are ignored by SBA personnel. Finally, 
Mr. Shear reviewed the failure of the SBA to implement many 
recommendations by GAO and the SBA's Inspector General 
concerning information technology.

      HEARING: ``ATTENTION NEEDED: MISMANAGEMENT AT THE SBA--THE 
                        ADMINISTRATOR RESPONDS''

    On January 7, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building to hear from the 
Administrator of the Small Business Administrator (SBA or 
Agency) on her response to a report by the United States 
Government Accountability Office (GAO) that examined the 
overall management of the Agency. The report stemmed from a 
request by the former Chairman, the Hon. Sam Graves, and the 
Ranking Member, the Hon. Nydia M. Velazquez to examine various 
aspects of the SBA's management rather than individual programs 
of the Agency.
    The sole witness at the hearing was the Hon. Maria 
Contreras-Sweet, Administrator, SBA, Washington, DC.
    The Administrator commenced her testimony by explaining the 
growth in lending to small businesses without any cost to the 
taxpayer. The Administrator went on to note that the federal 
government exceeded the 23 percent statutory goal for contracts 
awarded to small businesses. The Administrator admitted that 
there still were many open recommendations from GAO and the 
Agency's own Inspector General that she needs to address. She 
then provided the SBA's action plan to resolve those open 
recommendations.

HEARING: ``SBA MANAGEMENT REVIEW: OVERSIGHT OF SBA'S ACCESS TO CAPITAL 
                               OFFICES''

    On January 12, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``SBA Management Review: Oversight of SBA's Access to 
Capital Offices.'' The hearing examined the Office of Capital 
Access (OCA) and Office of Credit Risk Management (OCRM) within 
the United States Small Business Administration (SBA), which 
are responsible for operating and overseeing the capital access 
programs. The SBA offers a number of programs which aim to fill 
gaps in the lending market and increase small firms' access to 
capital by partnering with financial institutions and private 
investment funds.
    The witnesses were: Ms. Ann Marie Mehlum, Associate 
Administrator, Office of Capital Access, United States Small 
Business Administration, Washington, DC; and Ms. Linda Rusche, 
Director, Office of Credit Risk Management, United States Small 
Business Administration, Washington, DC.
    The witnesses provided testimony on OCA and OCRM and how 
these Offices were ensuring sufficient lender oversight and 
effectiveness in helping small firms obtain capital. Ms. Mehlum 
testified that while the loan program was growing in volume, 
the two flagship programs--the 7(a) program and the Certified 
Development Company (CDC) program--were operating at zero 
subsidy. Ms. Rusche testified that OCRM's responsibility was to 
preserve the integrity of the program through improved 
enforcement of lender program requirements.

HEARING: ``EXPORT CONTROL REFORM: CHALLENGES FOR SMALL BUSINESS? (PART 
                                 II)''

    On February 11, 2016, the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Export Control Reform: Challenges for Small Business? 
(Part II).'' The hearing examined the ongoing Export Control 
Reform (ECR) initiative and its implications for America's 
small exporters. This hearing followed the Small Business 
Subcommittee on Agriculture, Energy and Trade hearing ``Export 
Control Reform: Challenges for Small Businesses (Part I).''
    The witnesses for the hearing were: the Hon. Kevin J. Wolf, 
Assistant Secretary of Commerce for Export Administration, 
Bureau of Industry and Security, United States Department of 
Commerce, Washington, DC; and the Hon. Brian Nilsson, Deputy 
Assistant Secretary for Defense Trade Controls, Bureau of 
Political-Military Affairs, United States Department of State, 
Washington, DC.
    The Committee was particularly concerned that the ongoing 
Export Control Reform Initiative could adversely affect small 
businesses. In an effort to ensure this is mitigated, Mr. Wolf 
said the Administration is making structural regulatory changes 
and lengthening the type of outreach that they do. Structural 
regulatory changes include eliminating regulatory burdens for 
items by moving them from the United States Munitions List to 
the more flexible Department of Commerce list. In fact, Mr. 
Nilsson said in his testimony that there has been an 83 percent 
reduction in licensing for items that were on the United States 
Munitions List that have since moved to the Department of 
Commerce list. Mr. Wolf said his office is conducting panels, 
visiting small businesses, and hosting online training 
resources to help during this transition.

FIELD HEARING IN NEW YORK: ``THE EMPIRE (STATE) STRIKES BACK: CREATING 
      21ST CENTURY MANUFACTURING OPPORTUNITIES IN NEW YORK CITY''

    On February 22, 2016, the Committee on Small Business met 
in City Hall in New York, NY for a field hearing titled ``The 
Empire (State) Strikes Back: Creating 21st Century 
Manufacturing Opportunities in New York City.'' The hearing 
examined the growth of New York City's advanced manufacturing 
and technology sectors and witnesses testified about the 
development of these sectors, the challenges they face, and how 
New York City benefits their business.
    The witnesses for the hearing were: Mr. Adam Friedman, 
Director, Pratt Center for Community Development, Brooklyn, NY; 
Ms. Bob Bland, CEO and Founder, MANUFACTURE NY, Brooklyn, NY; 
Mr. Michael Dimarino, Owner, Linda Tool, Brooklyn, NY; Ms. 
Nekisia Davis, Founder and Owner, Early Bird Food & Co., LLC, 
Brooklyn NY; and Mr. Edward Jacobs, FXE Industries, Brooklyn 
Navy Yard, Brooklyn, NY.
    The hearing focused on how manufacturing can still thrive 
in America, and that New York City is a good example. Mr. 
Friedman outlined how major United States urban centers can be 
the manufacturing centers of the future, and his 
recommendations for how the federal government can assist. Ms. 
Bland talked about the prowess of New York City's fashion 
industry; New York is home to 900 fashion company headquarters, 
employs 180,000 people, and accounts for $2 billion in tax 
revenue. Mr. Dimarino testified that while the manufacturing 
landscape in New York has changed over the years, his company, 
Linda Tool, provides a blueprint for how to adapt as a 
manufacturer in New York City. Ms. Davis outlined her successes 
and challenges as a small manufacturer of granola and granola 
bars in Brooklyn. Finally, Mr. Jacobs said his desire to find 
employees in the niche industry of motorcycle design and 
engineering was best met at the Brooklyn Navy Yard.

   HEARING: ``COMMERCIALIZING ON INNOVATION: REAUTHORIZING THE SMALL 
  BUSINESS INNOVATION RESEARCH AND SMALL BUSINESS TECHNOLOGY TRANSFER 
                               PROGRAMS''

    On March 2, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Commercializing on Innovation: Reauthorizing the Small 
Business Innovation Research and Small Business Technology 
Transfer Programs.'' This hearing was the first of two hearings 
the Committee conducted to examine reauthorization of potential 
improvements to the Small Business Innovation Research (SBIR) 
and Small Business Technology Transfer (STTR) programs.
    The witnesses for the hearing were: Mr. John Williams, 
Director, Innovation and Technology, Office of Investment and 
Innovation, United States Small Business Administration, 
Washington, DC; Barry Johnson Ph.D., Division Director, 
Industrial Innovation & Partnerships, National Science 
Foundation, Arlington, VA; Matthew Portnoy Ph.D., Overall HHS 
SBIR/STTR Program Manager/NIH Program Manager, National 
Institutes of Health, Bethesda, MD; and Mr. Robert Smith, 
Director, SBIR/STTR Programs, Office of Naval Research, 
Department of the Navy, Arlington, VA.
    Mr. Williams outlined the recent accomplishments of the 
SBIR and STTR programs and included his recommendations for how 
to improve them. Specifically, Mr. Williams claimed that 
currently, firms are limited in using SBIR funds to support 
activities that help commercialize the firms' products and 
services. Dr. Johnson, who was next to testify, outlined how 
the National Science Foundation uses the SBIR and STTR programs 
to stimulate small businesses to innovate. He went on to say 
that besides funding, the NSF also provides an educational 
component that helps small business owners further understand 
market needs and customers. Dr. Portnoy's testimony focused on 
how the National Institute of Health uses the SBIR and STTR 
programs to promote innovation in the healthcare industry. 
Finally, Mr. Smith discussed how the Navy uses these two 
programs. The Navy's current initiatives for the programs 
include making awards to new firms, reducing award delays, and 
using non-SBIR/STTR funds to promote innovation.

  HEARING: ``SBA MANAGEMENT AND PERFORMANCE CHALLENGES: THE INSPECTOR 
                        GENERAL'S PERSPECTIVE''

    On March 16, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``SBA Management and Performance Challenges: The 
Inspector General's Perspective.'' The hearing was the last in 
a series of hearings the Committee held to examine serious 
management and performance challenges facing the SBA. This 
hearing was originally scheduled for February 24, 2016, but was 
postponed when the witness was unable to testify due to medical 
reasons.
    The Committee's oversight hearings were inspired by a 
Government Accountability Office (GAO) report highlighting 
management challenges within the SBA. The report noted that 
many of the challenges identified by the GAO were first 
identified by the SBA's Office of the Inspector General. The 
Committee invited the SBA's Inspector General, the Hon. Peggy 
Gustafson, to testify and offer her unique perspective on the 
management of the SBA as well as her insight into ways in which 
the SBA may more effectively, and more efficiently, assist 
small businesses.
    At the hearing, Ms. Gustafson highlighted some of her 
office's efforts, and singled out several areas where SBA 
management challenges posed a significant risk to the agency's 
ability to assist small businesses. Specifically, she mentioned 
the risks due to limited oversight and controls in SBA's 
lending programs; risks affecting SBA's oversight of contracts 
for small and disadvantaged businesses; risks associated with 
SBA's information security controls and other operations; risks 
associated with SBA's oversight and controls of grants for 
entrepreneurial development; and risks associated with SBA's 
acquisition program.
    The deficiencies identified by Ms. Gustafson in her 
testimony were disturbing. Chairman Chabot was specifically 
troubled by the SBA's long-standing challenges related to 
information technology security, and how these challenges have 
persisted. The Committee remains committed to working with Ms. 
Gustafson to ensure the SBA addresses its challenges.

   HEARING: ``KEEP IT SIMPLE: SMALL BUSINESS TAX SIMPLIFICATION AND 
                  REFORM, THE COMMISSIONER RESPONDS''

    On April 13, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Keep It Simple: Small Business Tax Simplification and 
Reform, the Commissioner Responds.'' The hearing was an 
opportunity for the Internal Revenue Service (IRS) to respond 
to what was discussed in the Subcommittee on Economic Growth, 
Tax and Capital Access hearing that morning, titled ``Keep it 
Simple: Small Business Tax Simplification and Reform, Main 
Street Speaks'' and provide its own recommendations for 
simplifying tax code compliance for small businesses.
    The Committee heard from a public sector panel that 
examined key tax issues as they apply to small businesses. 
Corporations and partnerships with more than 50 employees face 
a tax compliance burden of approximately $182 to $191 per 
employee, but this number skyrockets to $4,308 to $4,736 per 
employee for the smallest employers with 1-5 employees. As 
overall tax reform efforts continue to take shape, the goal of 
simplification must remain at the forefront so that small 
businesses can continue to grow, succeed, and create jobs.
    The witness for the hearing was the Hon. John Koskinen, 
Commissioner, Internal Revenue Service, Washington, DC.
    Commissioner Koskinen asserted that the IRS is a tax 
administrator and does not have a direct role in simplifying 
tax laws despite the IRS' regulatory authority. However, he 
conceded that not only is the current tax code complex, but 
keeping up with the myriad of changes in the tax system can be 
very difficult for small business owners. Commissioner Koskinen 
also discussed the IRS' initiatives to strengthen its cyber 
security, ensure timely and effective customer service, and 
increase tax assistance for small businesses and start-ups.

         HEARING: ``REGULATION: THE HIDDEN SMALL BUSINESS TAX''

    On April 14, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Regulation: The Hidden Small Business Tax.'' The 
hearing examined the burden of federal regulations on small 
businesses, federal agencies' analyses of the effects of 
regulations on small businesses, and the need to improve those 
assessments.
    According to the most recent statistics, small businesses 
employ 56.8 million employees, or nearly half of the nation's 
private sector workforce. In addition, small businesses are 
responsible for 63 percent of net new private sector jobs and 
produce 46 percent of private sector gross domestic product. 
However, in comparison to their larger counterparts, small 
businesses bear a disproportionate share of the federal 
regulatory burden. According to a 2014 study issued by the 
National Association of Manufacturers, small businesses with 
less than 50 employees annually spend 17 percent more than an 
average firm to comply with federal regulations.
    The witnesses for the hearing were: Ms. Karen R. Harned, 
Executive Director, National Federation of Independent Business 
Small Business Legal Center, Washington, DC; Mr. Frank Earnest 
Knapp, Jr., President and CEO, South Carolina Small Business 
Chamber of Commerce, Columbia, SC, on behalf of the American 
Sustainable Business Council; Mr. Rosario Palmieri, Vice 
President, Labor, Legal and Regulatory Policy, National 
Association of Manufacturers, Washington, DC; and Mr. Thomas M. 
Sullivan, Of Counsel, Nelson Mullins Riley & Scarborough, 
Washington, DC.
    Ms. Harned stated that small businesses rely on the notice 
and comment rulemaking process and small business protections 
like the Regulatory Flexibility Act (RFA) to ensure that 
agencies do not impose costly new mandates when viable and less 
expensive alternatives exist. She then described the 
significant burden that labor regulations place on small 
businesses, which rarely have human resources compliance 
managers, and the likely negative effects of the Department of 
Labor's proposed overtime rule on small businesses and their 
employees. Mr. Knapp discussed a survey that found that small 
business owners value regulations if they are well constructed 
and fairly enforced. Mr. Palmieri discussed the regulatory 
burden on small manufactures. Those with fewer than 50 
employees incur regulatory costs of $34,671 per employee per 
year, which is three times the amount spent by the average U.S. 
business. Furthermore, he stated that the burden of 
environmental regulations is the heaviest on small 
manufacturers because their compliance costs are not affected 
by economies of scale. Mr. Sullivan talked about the history 
and rationale behind the RFA as well as instances where the 
statute's requirements have been circumvented to the detriment 
of small businesses. In particular, he discussed the Waters of 
the United States rule which the Environmental Protection 
Agency (EPA) and the U.S. Army Corps of Engineers certified 
would not have a significant economic impact on a substantial 
number of small businesses despite the fact that the agencies' 
own economic analysis estimated increased permit and wetland 
mitigation costs.

HEARING: ``SMALL BUSINESS AND THE FEDERAL GOVERNMENT: HOW CYBER ATTACKS 
                            THREATEN BOTH''

    On April 20, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Small Business and the Federal Government: How Cyber 
Attacks Threaten Both.'' The hearing examined the current state 
of cyber security for small firms and various supporting 
federal agencies and potential solutions to strengthen their 
efforts. Information technology provides small businesses with 
the necessary tools to efficiently engage in the global 
economy. However, as small businesses increasingly rely on web-
based products and services, they face an even greater threat 
from cyber criminals. Even a simple cyber attack can 
effectively destroy a small business. Recent studies indicate 
that cyber security measures continue to be one of the top 
issues for small businesses. Unfortunately, some analyses have 
found that not only are many small businesses underprepared to 
combat cyber attacks, the very federal agencies tasked with 
supporting small businesses lack essential resources to defend 
against cyber criminals.
    The witnesses for the hearing were: Mr. Richard Snow, 
Owner, Maine Indoor Karting, Scarborough, ME; Mr. Kevin Dunn, 
Technical Vice President, NCC Group, Austin, TX; Mr. Nicholas 
A. Oldham, Counsel, King & Spalding LLP, Washington, DC; and 
Stephen F. Mankowski, CPA, National Tax Chair, National 
Conference of CPA Practitioners (NCCPAP), National Secretary, 
NCCPAP, Partner at EP Caine & Associates CPA, LLC, Bryn Mawr, 
PA.
    Mr. Snow discussed his company's cyber attack and the 
expense and confusion that surrounds the process. Mr. Snow 
recounted how he responded to both an employee taking money 
from the cash registers as well as his experience dealing with 
a phishing scam that wiped his company's accounts. Mr. Oldham 
addressed the education gap in preparing consumers and 
businesses to handle cyber hackers. However, he went on to say 
that many cybersecurity initiatives, including the National 
Institute of Standards and Technology framework, are not 
tailored to the limited resources of small businesses. Mr. Dunn 
discussed his experience as a `Penetration Tester' that 
provides customized advice to clients to upgrade their cyber 
security. He also spoke about the potential scenario of hackers 
being able to access government data through small business 
servers. Finally, Mr. Mankowski discussed tax practitioners 
handling sensitive consumer and business tax filing information 
because they are disproportionally targeted by hackers.

 HEARING: ``S IS FOR SAVINGS: PRO-GROWTH BENEFITS OF EMPLOYEE-OWNED S 
                             CORPORATIONS''

    On April 27, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``S is for Savings: Pro-Growth Benefits of Employee-
owned S Corporations.'' The hearing focused on employee-owned S 
corporations (S ESOPs), particularly how S ESOPs establish 
employee ownership and the benefits that may accrue to the 
small business and the economy as a result. It also examined 
H.R. 2096, the Promotion and Expansion of Private Employee 
Ownership Act of 2015, which has been referred to this 
Committee, and whether this bill would encourage S ESOP 
proliferation.
    S corporations have been permitted to maintain S ESOPs, a 
type of defined contribution plan, since 1998. The data seem to 
demonstrate that S ESOPs are outperforming other incentives to 
drive success by improving: employee loyalty, firm longevity, 
base wages, wage growth, job stability, retirement security, 
employment, sales, and wage disparity. They also have a 
measurable effect on the economy as a whole. H.R. 2096 would 
foster formation of additional S ESOPs by: 1) encouraging 
owners of S corporations to sell their stock to an ESOP; 2) 
expanding financing opportunities for S corporation ESOPs; 3) 
providing technical assistance for S ESOP formation; 4) 
ensuring small business ESOPs retain their SBA certification; 
and 5) acknowledging the importance of maintaining the S ESOP 
structure in the Internal Revenue Code.
    The witnesses for the hearing were: Mr. Peter S. Strange, 
Chairman Emeritus, Messer Inc., Cincinnati, OH; Mr. Jay Hardy, 
President, Hardy Diagnostics, Santa Maria, CA, on behalf of the 
Warren County Chamber Alliance; Mr. Alex Brill, Resident 
Fellow, American Enterprise Institute, Washington, DC; and Ms. 
Stephanie E. Silverman, President & Executive Director, 
Employee-Owned S Corporations of America, Washington, DC.
    Mr. Strange related Messer Inc.'s story of becoming an ESOP 
to avoid being sold off by a new generation of owners who were 
not interested in running the company. Over the 25 years after 
becoming an ESOP, the company grew from 200 employees to over 
1,000. Mr. Hardy's company, Hardy Diagnostics, became an S ESOP 
four years ago as an exit and retirement strategy for the 
founder and the company's employees. Since then, the company 
has grown by 78 percent and Mr. Hardy believes forming the ESOP 
was a significant factor in this growth. Mr. Brill examined the 
macroeconomic impact of S ESOPs on the economy as a whole. He 
found that S ESOPs are vital economic players in the United 
States. Among other economic benefits, Mr. Brill said that 
ESOPs have low turnover, resilience during economic downturns, 
and average 2.3-2.4 percent higher sales than non-S ESOP 
companies. Ms. Silverman also mentioned the strong performance 
of S ESOPs in the United States and advocated for passage of 
H.R. 2096, which would incentivize S corporations to sell their 
stock to an ESOP, encourage banks to lend to S ESOPs, and 
permit SBA-certified small businesses to remain eligible for 
SBA programs after becoming majority owned by an ESOP. Chairman 
Chabot then announced he would cosponsor H.R. 2096.

    HEARING: ``INSPIRING ENTREPRENEURS: LEARNING FROM THE EXPERTS''

    On May 11, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Inspiring Entrepreneurs: Learning from the Experts.'' 
This hearing was an opportunity to hear from four individuals 
who are seen as experts in the fields of small business and 
entrepreneurship.
    The witnesses for the hearing were: Ms. JJ Ramberg, Host, 
MSNBC ``Your Business,'' New York, NY; Mr. Ramon Ray, Editor, 
Smart Hustle Magazine, Elizabeth, NJ; Ms. Susan Solovic, The 
Small Business Expert & Advocate, St. Louis, MO; and Ms. 
Melinda Emerson, Founder & CEO, Quintessence Group & Melinda F. 
Emerson Foundation, Drexel Hill, PA.
    Ms. Ramberg's testimony discussed her business, Goodshop 
and her TV show, ``Your Business,'' and the change in public 
perception of entrepreneurs over the last decade. Ms. Ramberg 
noted that there is much more public focus on entrepreneurship 
and small business now than when she began her career. In terms 
of her recommendations for small business owners, she urged 
entrepreneurs to have a good group of advisors, ensure that 
there is a legitimate market for their product, and examine all 
avenues for capital to see what would best fit their business.
    After outlining his experience as an entrepreneur, Mr. Ray 
gave three recommendations for how the government and the 
Committee can best assist small businesses. His recommendations 
were: reduce unnecessary regulatory burdens at every level of 
government; reduce and simplify taxes for small businesses; and 
foster small business education. Ms. Solovic spoke about her 
business, The One Percent Edge, which provides news and 
information to the small businesses. Through video 
presentations, she was able to create a product that was not 
only cheaper to produce than print publications, but also was 
more convenient for time-constrained business owners to watch. 
She also noted how excessive regulations hurt small businesses, 
as they bear a larger burden than large companies. Ms. Emerson 
provided a six-step transition from employee to entrepreneur: 
(1) develop a life plan before you ever write a business plan; 
(2) develop a financial plan; (3) validate your business idea; 
(4) know your paying customer; (5) write a business plan; and 
(6) launch while working.

          HEARING: ``THE NEW FACES OF AMERICAN MANUFACTURING''

    On May 12, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``The New Faces of American Manufacturing.'' Over the 
next decade, it is likely that nearly three and a half million 
manufacturing jobs will need to be filled. There is expected to 
be a ``skills gap'' that will result in two million of those 
jobs going unfilled. The hearing examined this issue, as well 
as the innovative ways academia and manufacturers are 
addressing workforce development for the next generation of 
American manufacturers.
    The witnesses for the hearing were: Mr. John Ratzenberger, 
Fiddlers Bay Productions, Milford, CT; Mr. Dustin Tillman, 
President and CEO, Elite Aviation Products, Irvine, CA; Ray 
Perren, Ph.D., President, Lanier Technical College, Oakwood, 
GA, on behalf of the Association for Career and Technical 
Education; and Ms. Kim Glas, Executive Director, BlueGreen 
Alliance, Washington, DC.
    Mr. Ratzenberger recounted how America was created by those 
who could build. However, in today's manufacturing sector, the 
average worker is 58 years old, and there are not enough 
younger workers to replace them when they retire in the not-so-
distant future. He went on to say that one of the reasons for 
the lack of young manufacturers is the American school system's 
removal of classes like wood shop, metal shop, auto repair shop 
and home economics. Mr. Tillman discussed his company's 
initiatives to bring high quality manufacturing jobs back to 
the United States. However, he believes that legislation too 
often focuses on helping only small, minority owned, and 
disadvantaged businesses, and not the midsized businesses that 
are capable of employing a larger portion of the labor force. 
He described his company, Elite Veterans Initiative, which 
helps to train and hire those transitioning from the military 
into the private sector.
    Dr. Perren tried to dispel many of the myths associated 
with the contemporary manufacturing sector. He found that 
manufacturing jobs in the United States often provide clean 
working environments, collaborative and non-repetitive tasks, 
and most importantly, provide livable salaries that do not 
require a four-year degree. He urged Congress to support 
technical colleges through year-round Pell grants. Ms. Glas 
discussed the clean energy industry, which currently employs 
2.5 million Americans. She urged the federal government to 
continue to help small manufacturers and promote the creation 
of more safe, family-sustaining energy and transportation jobs.

  HEARING: ``HELP WANTED: SMALL BUSINESS PROVIDING OPPORTUNITIES FOR 
                                 ALL''

    On May 19, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Help Wanted: Small Business Providing Opportunities 
for All.'' The hearing demonstrated that there are 
opportunities for all in small business and as entrepreneurs.
    The witnesses for the hearing were: Ms. Lisa Goring, 
Executive Vice President, Programs and Services, Autism Speaks, 
New York, NY; Ms. Terri Hogan, Owner, Contemporary Cabinetry 
East, Cincinnati, OH; Mr. Rajesh Anandan, Co-founder, ULTRA 
Testing, New York, NY; Mr. Joe Steffy, Owner, Poppin Joe's 
Gourmet Kettle Korn, Louisburg, KS, accompanied by Mr. Ray 
Steffy.
    Ms. Goring testified about Autism Speaks' work with the 
small business community to provide employment opportunities to 
individuals with autism. Autism Speaks believes the innovation 
and flexibility unique to small businesses and entrepreneurs 
enables them to lead the way in employing individuals with 
autism. As a result, Autism Speaks has undertaken a small 
business-focused employment initiative, Advancing the Role and 
Impact of Small Businesses in Employing Adults with Autism. The 
organization will fund additional grants for their Small 
Business Accelerator pilot programs to three new regions in 
2016.
    Ms. Hogan and Mr. Anandan both testified regarding their 
experiences as small business owners. Ms. Hogan employs an 
individual with special needs who has brought community 
awareness and raised moral within her company. She mentioned a 
variety of resources to help employers understand how to 
accommodate workers with disabilities and how to teach these 
individuals the skills they need to succeed in the workplace. 
Mr. Anandan testified that simple accommodations his company 
has made to employ individuals with Autism have benefited and 
improved his company.
    Mr. Steffy has Autism and Down syndrome. Although he is 
nonverbal, he was able to testify using technology and 
discussed his company, Poppin Joe's Gourmet Kettle Korn. After 
completing school, Mr. Steffy was told that he would never be 
able to hold a job. Through his hard work and perseverance, he 
started and grew his company to a point where he lives in his 
own home, pays taxes, and travels.

      HEARING: ``THE SHARING ECONOMY: A TAXING EXPERIENCE FOR NEW 
                        ENTREPRENEURS, PART I''

    On May 24, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``The Sharing Economy: A Taxing Experience for New 
Entrepreneurs, Part I.'' The hearing was Part I of a two-part 
series to discuss the tax challenges presented by the sharing 
economy. Part I featured a private-sector panel of experts.
    The witnesses for the hearing were: Ms. Caroline Bruckner, 
Executive-in-Residence, Accounting and Taxation, Managing 
Director, Kogod Tax Policy Center, Washington, DC; Mr. Rob 
Willey, VP Marketing, TaskRabbit, San Francisco, CA; Mr. Morgan 
Reed, Executive Director, ACT The App Association, Washington, 
DC; and Mr. Joe Kennedy, Senior Fellow, Information Technology 
and Innovation Foundation, Washington, DC.
    Ms. Bruckner said that although the sharing economy has 
experienced extraordinary growth in the past few years, very 
little has been done to understand the tax compliance 
challenges for those who work in the industry. In developing a 
report, Ms. Bruckner discovered that of those who earned income 
working with an on-demand platform company: one-third did not 
know whether they were required to file quarterly-estimated 
payments with the Internal Revenue Service (IRS); 26 percent 
did not know what kind of records were needed for tax purposes; 
43 percent were unaware of how much they would owe in taxes; 
and almost half did not know of any deductions. This 
illustrates the confusion associated with the sharing economy 
when it comes to tax compliance. Mr. Willey said that many who 
use the app for work are unaware of the tax compliance 
challenges or tax benefits to which they are entitled. He said 
TaskRabbit has been reluctant to pursue training opportunities 
for its workers because of the threat of litigation, the risks 
tied to worker classification, and regulations at both the 
federal and state level. Mr. Reed asked Congress and the IRS to 
ensure that the tax code be used to help the sharing economy 
grow. He also urged Congress to advance legislation that would 
increase transparency in the tax resolution process for those 
in the sharing economy. Mr. Kennedy noted that the employee-
contractor distinction is a holdover from common law that is 
frequently not relevant to the contexts in which it is applied 
today. He presented three options for adapting to the times and 
better accommodating new constructs, such as the sharing 
economy: 1) create a new category of worker between full 
employee and independent contractor; 2) revisit each of the 
major labor laws and carefully tailor them to achieve specific 
goals; and 3) create a carve-out for workers who depend on 
Internet platforms.

      HEARING: ``THE SHARING ECONOMY: A TAXING EXPERIENCE FOR NEW 
                        ENTREPRENEURS, PART II''

    On May 26, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``The Sharing Economy: A Taxing Experience for New 
Entrepreneurs, Part II.'' This hearing was Part II of a hearing 
conducted on May 24, 2016, to discuss the tax challenges 
presented by the sharing economy. The May 24 hearing featured a 
panel of private sector experts, and the May 26 hearing 
followed with a government panel.
    The sole witness for the hearing was Nina Olson, National 
Taxpayer Advocate, Internal Revenue Service, Washington, DC.
    Ms. Olson testified that many who work in the sharing 
economy do not fully understand their tax filing obligations. 
She recommended that the Internal Revenue Service (IRS) expand 
its education and outreach to sharing economy participants 
through its website and printed materials. She also made a 
number of other recommendations designed to improve voluntary 
tax compliance by sharing economy participants. Ms. Olson 
suggested permitting an expansion of the relationship between 
the company and the contractor that would not jeopardize worker 
classification, including voluntary withholding agreements and 
optional training. She also suggested making it easier for 
people to understand their obligations and comply by changing 
the quarterly filing dates to actually correspond to the 
quarters.

     HEARING: ``DAMAGING REPERCUSSIONS: DOL'S OVERTIME RULE, SMALL 
                    EMPLOYERS, AND THEIR EMPLOYEES''

    On June 23, 2016, the Committee on Small Business met for a 
hearing titled ``Damaging Repercussions: DOL's Overtime Rule, 
Small Employers, and their Employees.'' The hearing examined 
the effects of the final rule that revises the existing Fair 
Labor Standards Act (FLSA) regulations that implement the 
exemption from minimum wage and overtime pay for executive, 
administrative, professional, outside sales and computer 
employees on small employers and their employees. It also 
assessed the adequacy and accuracy of the Department of Labor's 
(DOL) analysis of small business economic impacts required by 
the Regulatory Flexibility Act.
    The rule, which was finalized in May 2016, makes several 
significant changes to the existing FLSA regulations. The 
Department of Labor (DOL) increased the salary that must be 
paid to satisfy the ``salary level'' test from the current 
level of $23,660 to $47,476 annually and established a new 
process to automatically update the salary level every three 
years.
    The witnesses for the hearing were: Mr. Adam Robinson, Co-
founder/CEO, Hireology, Chicago, IL, on behalf of the Job 
Creators Network; the Hon. Jerrie Tipton, Commission Chair, 
Mineral County, Hawthorne, NV, on behalf of the National 
Association of Counties; Mr. Albert F. Macre, General Partner, 
Payroll + Services, Steubenville, OH, on behalf of the National 
Federation of Independent Business; Ms. Christine V. Walters, 
JD, MAS, SHRM-SCP, SPHR, Sole Proprietor, FiveL Company, 
Westminster, MD, on behalf of the Society for Human Resource 
Management; and Mr. Ross Eisenbrey, Vice President, Economic 
Policy Institute, Washington, DC.
    At the hearing, the panel discussed the DOL's overtime rule 
and the ramifications for small employers, including small 
businesses, small nonprofits, and small governmental 
jurisdictions. Mr. Robinson discussed how the overtime rule 
will adversely affect technology startups like the human 
resources technology business that he founded, Hireology, which 
typically use compensation structures with lower base salaries 
and the opportunity to earn significant bonuses and 
commissions. He is concerned that this new rule will regulate 
opportunities like these out of existence because it does not 
distinguish among firm size, sector, location, or compensation 
structure. Commissioner Tipton discussed how this new rule will 
affect county governments, particularly small government 
jurisdictions with populations of 50,000 residents or less, 
that are still struggling to recover from the recession and 
lack the resources and the ability to raise revenue to absorb 
sudden pay increases. Absent new revenue sources, counties may 
have to reduce service levels, decrease employee benefits, or 
cut staff. Mr. Macre mentioned the challenges that small 
businesses with thin margins and variations in the number of 
hours their employees work in a workweek may face. For the 
first time in twenty years, his company may require its 
employees to bear a portion of their health insurance costs. 
Ms. Walters explained the overtime rule will affect both the 
employees and services provided by small nonprofit 
organizations and small businesses with limited flexibility in 
their budgets. Ms. Walters discussed the disproportionate 
administrative burden that small employers, which often have 
one person performing the role of office manager, payroll 
administrator and human resources generalist, will incur due to 
the overtime rule. Mr. Eisenbrey said he supports the rule and 
stated that millions of people will get raises, reduced hours 
for the same pay, or find new jobs due to the rule.

     HEARING: ``FOREIGN CYBER THREATS: SMALL BUSINESS, BIG TARGET''

    On July 6, 2016, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Foreign Cyber Threats: Small Business, Big Target.'' 
The hearing addressed the threat of foreign cyber attacks on 
small businesses. Information technology provides small 
businesses with the necessary tools to be competitive in the 
global economy. However, as small businesses increasingly rely 
on foreign technology products and services, they face an even 
greater threat from cyber attacks. As the Committee has learned 
through previous hearings, even a simple cyber attack can 
destroy a small business. Unfortunately, some foreign 
telecommunications firms are taking steps to develop an 
unbreakable link to American companies and markets, making 
small businesses a top target. These foreign firms strive to 
become highly integrated with American firms in order to evade 
the consequences associated with ignoring U.S. sanctions on 
rogue regimes. Not only does this pose a significant risk to 
our national security, but it also creates real concerns for 
the safety and sustainability of America's small businesses--
firms that are often ill-equipped to combat against cyber 
attacks and properly identify looming foreign threats.
    The witnesses for the hearing were: Mr. Jamil N. Jaffer, 
Director, Homeland and National Law Program, George Mason 
School of Law, Arlington, VA; Mr. Justin Zeefe, Co-founder & 
Chief Strategy Officer, Nisos Group, Alexandria, VA; Mr. Nova 
J. Daly, Senior Public Policy Advisor, Wiley Rein LLP, 
Washington, DC; and Ms. Angela Dingle, Founder, President and 
CEO, Ex Nihilo, Washington, DC.
    Mr. Jaffer made seven recommendations for both the 
government and small businesses: 1) businesses must get buy-in 
for the need for cyber security; 2) small businesses must 
consider working together to spread the cost of cyber defense 
products; 3) small businesses must collaborate with the 
government and large businesses to share cyber threat 
information, 4) the government must get more serious about 
deterring nation-state threat actors; 5) the government must 
provide more detailed information about cyber threats facing 
our nation; 6) the government must incentivize investment in 
cyber security products; and 7) Congress should consider 
modifying the Cybersecurity Information Sharing Act of 2015. 
Mr. Zeefe discussed why foreign cyber threats have moved to 
attacking small businesses. Only 23 percent of small businesses 
worry a great deal about cyber risk, and when larger companies 
and the government have greatly improved their cyber defense, 
cyber attackers simply attack the most vulnerable entities. Mr. 
Daly recommended that small companies focus on enforcement of 
export controls, promote industry-led cyber security standards, 
increase outreach efforts to small businesses, and address 
supply chain security issues. Ms. Dingle stressed that 
government contracts are vital for women entrepreneurs to grow 
their businesses. However, she stated that compliance with 
regulations such as ``Protecting Controlled Unclassified 
Information in Nonfederal Information Systems and 
Organizations'' and the ``Insider Threat Program'' amendment to 
the Defense Federal Acquisition Regulation Supplement adversely 
affect small businesses.

 HEARING: ``ENSURING OPPORTUNITIES: OVERSIGHT OF THE HUBZONE PROGRAM''

    On September 7, 2016, the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Ensuring Opportunities: Oversight of the HUBZone 
Program.'' The hearing provided oversight of the Small Business 
Administration's (SBA) Historically Underutilized Business 
Zones (HUBZone) Program, which provides federal contracting 
opportunities to small businesses in areas of the country that 
are economically distressed.
    The witnesses for the hearing were Mr. William B. Shear, 
Director, Financial Markets and Community Investment, United 
States Government Accountability Office, Washington, DC; and 
Mr. John Shoraka, Associate Administrator, Office of Government 
Contracts and Business Development, United States Small 
Business Administration, Washington, DC.
    Mr. Shear focused on the Government Accountability Office's 
(GAO) audit of the SBA's HUBZone program and whether SBA has 
implemented GAO's recommendations. He said the SBA has not 
cited specific firms that would lose eligibility due to changes 
in the HUBZone program. SBA did not require firms seeking 
recertification to submit information to verify continued 
eligibility, he said. He noted that GAO's 2015 report on the 
program explored changes to designation criteria for the 
program that could result in economic gains in some 
communities. However, the report also said that while the 
changes could benefit some communities, there could be other 
communities that could be adversely affected. Mr. Shoraka 
highlighted many of the recent achievements of federal 
contracting programs, including exceeding the 23 percent prime 
contracting goal, the five percent women owned business goal, 
and the hiring of 10 additional procurement executives. He 
mentioned the HUBZone program's accomplishments, noting that 
SBA has reduced the application waiting period to a maximum of 
90 days and increased site visits to 10 percent of the 
portfolio in order to improve eligibility verification. He also 
said the SBA has been in communication with both GAO and SBA's 
Office of Inspector General (OIG) to meet their recommendations 
for the HUBZone program, and that the SBA has almost completed 
implementation of the recommendations.
    Mr. Shoraka testified that SBA had determined that it had 
the authority to expand HUBZone designations beyond 20 percent 
of a metropolitan area, which was the cap the program has been 
working from. He cited an opinion written by SBA's Office of 
the General Counsel, which was provided to the Committee after 
the hearing. During the hearing, Members were skeptical about 
this opinion because it seemed to be contrary to clear 
statutory language, and the Committee was not consulted. The 
effect of this opinion could potentially be significant, 
impacting whether areas most in need would be able to compete 
for government contracts, and damaging the effectiveness of the 
program.
    Chairman Chabot said that proper management of the HUBZone 
is key to its success, and the guidance GAO has provided is 
invaluable for the Committee. He urged the SBA to take 
immediate action to adopt all of GAO's recommendations, and 
noted that major program reforms must be accomplished though 
the legislative process.

      HEARING: ``IRS PUTS SMALL BUSINESSES THROUGH AUDIT WRINGER''

    On September 14, 2016, the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``IRS Puts Small Businesses through Audit Wringer.'' The 
hearing was a follow-up to the June 22, 2016 hearing conducted 
by the Subcommittee on Economic Growth, Tax, and Capital 
Access. That hearing examined the broad systemic problems 
across the IRS' authority with regard to small businesses and 
laid the foundation for further exploration of these issues.
    The IRS is in the unique position of being both tax 
collector and tax code enforcer. The IRS has fairly clear 
internal guidelines when auditing large businesses, but the 
conduct of small business audits is less well regulated, often 
resulting in confusion and frustration on the part of small 
business taxpayers. The Committee met to examine how small 
businesses are being treated during the audit process.
    The witnesses for the hearing were: Ms. Kathy Petronchak, 
Director of IRS Practice and Procedure, alliantgroup, LP, 
Houston, TX; Mr. Warren Hudak, President, Hudak & Company, 
Lemoyne, PA, on behalf of the National Association of Enrolled 
Agents; Mr. Don Williamson, Executive Director, Kogod Tax 
Policy Center, American University, Washington, DC; and Ms. 
Jennifer E. Breen, Partner, Morgan, Lewis & Bockius LLP, 
Washington, DC, on behalf of the American Bar Association 
Section of Taxation.
    Ms. Petronchak focused on the issues faced by small 
business taxpayers in the exam process. She discussed the 
involvement of specialists in the audit process, frequently 
without the knowledge of the taxpayer. She also discussed the 
increasing problem of third party contacts and suggested that 
IRS increase transparency and work with the National Taxpayer 
Advocate on the issue. Mr. Hudak addressed increased agency 
reliance on automation, unreasonable delay, and auditor 
inexperience and poor training. He pointed out that these 
issues fly in the face of the Taxpayer Bill of Rights. He 
recommended that the IRS make more focused and reasonable 
queries when examining small businesses. Mr. Williamson 
discussed some of the pitfalls of the correspondence audit, 
including providing no point of contact and the lack of 
specificity in document requests. Ms. Petronchak, Mr. Hudak, 
and Mr. Williamson agreed that having an auditor specifically 
assigned to even a correspondence audit would be helpful and 
that increased electronic access to an actual auditor would 
make the process faster and less confusing. Ms. Breen described 
the IRS examination process and explained the differences 
between a correspondence audit and a field audit.

                                 PART B

                         Subcommittee Hearings

 HEARING: ``CONTRACTING AND THE INDUSTRIAL BASE II: BUNDLING, GOALING, 
                AND THE OFFICE OF HEARINGS AND APPEALS''

    On March 17, 2015, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled 
``Contracting and the Industrial Base II: Bundling, Goaling, 
and the Office of Hearings and Appeals.'' The hearing was the 
second of three hearings that examined the utilization of small 
businesses to support the industrial base. This hearing focused 
on: 1) bundling, consolidation, and strategic sourcing; 2) the 
Small Business Administration's (SBA) goaling methodology and 
processes; and 3) the jurisdiction and operation of SBA's 
Office of Hearings and Appeals.
    The witnesses for the hearing were: Mr. Joe Wynn, 
President, VETS Group, Inc., Washington, DC, on behalf of the 
VET-Force; Mr. Robert Burton, Partner, Venable LLP, Washington, 
DC; Mr. Alan Chvotkin, Executive Vice President and Counsel, 
Professional Services Council, Arlington, VA; and Mr. Damien 
Specht, Partner, Jenner & Block LLP, Washington, DC.
    Mr. Wynn was concerned that many contracts which could 
otherwise be set aside for small businesses are being bundled 
together and awarded to larger companies. In addition, he said 
that large prime contractors face little to no repercussions 
for excluding small companies from their subcontracting plans. 
Mr. Burton focused his testimony on three points: 1) the 
current bundling regulations diminish the overall small 
business participation rate of federal procurements; 2) the 
lack of statutory authority for the SBA Office of Hearings and 
Appeals is problematic for small businesses because it reduces 
its independence from SBA; and 3) SBA's exclusion from the FAR 
Council has been detrimental to small businesses. Mr. Chvotkin 
highlighted four issues with federal contracting: (1) strategic 
sourcing; (2) the imbalance in small business goal setting; (3) 
the need for improving the quality of existing data 
collections; and (4) the challenge of fully evaluating the 
effect of laws and regulations on small businesses. Mr. Specht 
supported the subcommittee's efforts to increase transparency 
and reporting of data related to bundling. He urged the 
Subcommittee to look beneath the surface of overall small 
business participation numbers and judge whether these actions 
are consistent with stated small business policy goals.

 HEARING: ``CONTRACTING AND THE INDUSTRIAL BASE III: REVERSE AUCTIONS, 
            VERIFICATION AND THE SBA'S ROLE IN RULEMAKING''

    On March 19, 2015, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled 
``Contracting and the Industrial Base III: Reverse Auctions, 
Verification and the SBA's Role in Rulemaking.'' The hearing 
was the last of three hearings that examined the utilization of 
small businesses to support the industrial base. This hearing 
focused on: 1) reverse auctions other than those auctions for 
construction services; 2) the Small Business Administration 
(SBA) and the Department of Veterans Affairs' (VA) contracting 
programs for service-disabled veteran-owned small businesses 
(SDVOSBs); and 3) SBA's ability to implement and enforce its 
statutory functions with regard to the small business 
contracting.
    The witnesses for the hearing were: Mr. Daniel I. Gordon, 
Senior Advisor, Government Procurement Law Program, The George 
Washington University Law School, Washington, DC; Ms. Amber 
Peebles, President, Athens Construction Group, Inc., Dumfries, 
VA, on behalf of Women Impacting Public Policy; Mr. Davy G. 
Leghorn, Assistant Director, National Veterans Employment & 
Education Division, The American Legion, Washington, DC; and 
Ms. Margot Dorfman, CEO, United States Women's Chamber of 
Commerce, Washington, DC.
    Mr. Gordon praised the electronic reverse auction's 
benefits of savings, speed, and increased procurements for 
small businesses. In his experience, using FedBid to run these 
reverse auctions has been cost efficient and relieves federal 
agencies of many administrative, training, and technical duties 
associated with running reverse auctions. Ms. Peebles said that 
in the current system, contracting officers can close an 
auction with only seconds remaining, and the auction site is 
not suitable for complex bidding. In addition to these issues, 
she believes that strategic sourcing efforts by the federal 
government erode the small business industrial base. Mr. 
Leghorn was also skeptical of reverse auctions, reporting that 
they decrease quality, decrease opportunities for veteran 
business owners, and do not allow the federal government to buy 
products at the market price. He submitted a seven point list 
of suggestions to improve the current reverse auction system, 
which included increasing outreach for veteran-owned businesses 
and eliminating the ability of the buyer to set a minimally 
acceptable price.
    Ms. Dorfman's concerns with reverse auctions included the 
complexity of pricing, risk of defective products, and that low 
bidders may try to win a contract and then seek to make up lost 
profits through price adjustments. She was skeptical of SBA's 
implementation of the Women-Owned Small Business set-aside 
program, saying SBA ignored stakeholder input and the document 
system for firms seeking to access the program was overly 
complex.

     HEARING: ``IMPROVING CAPITAL ACCESS PROGRAMS WITHIN THE SBA''

    On May 19, 2015, the Subcommittee on Economic Growth, Tax 
and Capital Access of the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Improving Capital Access Programs within the SBA.'' 
Specifically, the Subcommittee was interested in obtaining 
industry suggestions on improvements to the programs that would 
increase their effectiveness in assisting small firms seeking 
to obtain capital.
    The witnesses were: Ms. Barbara A. Vohryzek, President and 
CEO, National Association of Development Companies, Washington, 
DC; Mr. Brett Palmer, President, Small Business Investor 
Alliance, Washington, DC; Mr. Rich Bradshaw, President of 
Specialized Lending, United Community Bank, Greenville, SC, 
testifying on behalf of the National Association of Government 
Guaranteed Lenders; and Mr. Brandon Napoli, Director of 
Microlending, Valley Economic Development Center, Van Nuys, CA.
    Ms. Vohryzek testified that the Certified Development 
Company (CDC) program would be more effective if economic 
development were defined as well as allowing for commercial 
refinance. Mr. Palmer discussed the need for and benefit of 
H.R. 1023, the Small Business Investment Company Capital Act of 
2015, which would raise the amount of leverage available to 
Small Business Investment Companies (SBICs) under common 
control from $225 million to $350 million. Mr. Bradshaw stated 
that the 7(a) lenders were making more loans, but he had 
concerns that 7(a) loan program requests may exceed the lending 
cap set by Congress. Mr. Napoli discussed the evolution of the 
microloan program and the benefits that both technical 
assistance and these smaller loans provide to entrepreneurs.

    HEARING: ``SIZING UP SMALL BUSINESS: SBA'S FAILURE TO IMPLEMENT 
                       CONGRESSIONAL DIRECTION''

    On June 4, 2015, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled 
``Sizing Up Small Business: SBA's Failure to Implement 
Congressional Direction.'' The hearing examined the Small 
Business Administration's (SBA) failure to properly implement 
Sec. 1661 of the National Defense Authorization Act for Fiscal 
Year 2013. Pursuant to the Small Business Act, the SBA is 
charged with providing size standards that define which 
businesses are small businesses for the purpose of a specific 
industry. Section Sec. 1661 added requirements to the process 
by which SBA creates these size standards to ensure the process 
is properly implemented. Unfortunately, the SBA continues to 
promulgate size standards without following the Sec. 1661 
requirements.
    The witnesses for the hearing were: Mr. Jim Fontana, 
Dempsey Fontana, PLLC, Reston, VA, on behalf of the Small 
Business Value Added Reseller Consortium; Mr. Stephen Charles, 
Co-Founder, Executive Vice President, immixGroup, Inc., McLean, 
VA; Mr. Ronald Reim, Executive Vice President, Oculus, Inc., 
St. Louis, MO, on behalf of the American Institute of 
Architects; and Mr. Roger Jordan, Vice President of Government 
Relations, Professional Services Council, Arlington, VA.
    Mr. Fontana's testimony focused on his concerns with 
proposed regulations by the SBA as well as his support for H.R. 
1429, the Stronger Voice for Small Business Act of 2015. Mr. 
Charles expressed support for H.R. 1429 and H.R. 1481. He also 
stated that the current Information Technology Value Added 
Reseller exception in small business set-asides has restricted 
competition and small business participation in contracting. 
Mr. Reim discussed the current SBA size standards and said SBA 
should not consider architecture firms and engineering firms 
together because typically engineering firms are much larger. 
While Mr. Jordan supports the SBA's first large overhaul of the 
size standard methodology in over 30 years, he believes the SBA 
is ignoring the significant changes in the computer-related 
industry over the last 25 years.

 HEARING: ``SQUEEZED: CURRENT CHALLENGES FOR SMALL CITRUS OPERATIONS''

    On June 11, 2015, the Subcommittee on Agriculture, Energy 
and Trade of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled 
``Squeezed: Current Challenges for Small Citrus Operations.'' 
The hearing examined how current challenges are affecting small 
growers and other small businesses in the United States citrus 
industry.
    The United States is among the top citrus producing 
countries in the world. However, the United States' citrus 
acreage and production are declining due to pests, disease, and 
catastrophic weather events. Between the years 2000 and 2014, 
Florida citrus grove bearing acreage declined by 37 percent, 
from 750,000 acres to approximately 476,000 acres. In addition, 
United States citrus production has dropped by nearly half from 
17.8 million tons in 1998 to 9.4 million tons in the 2014-2015 
season.
    Witnesses on the panel were: Mr. Kevin Severns, Owner, 
Severns Farms, Sanger, CA, on behalf of California Citrus 
Mutual; Mr. N. Larry Black, Jr., General Manager, Peace River 
Packing Company, Fort Meade, FL, on behalf of Florida Citrus 
Mutual; Mr. Dale Murden, President, Texas Citrus Mutual, 
Mission, TX; and Michael Rogers, Ph.D., Interim Director and 
Associate Professor, Citrus Research and Education Center, 
Institute of Food and Agriculture Sciences, University of 
Florida, Lake Alfred, FL.
    The witnesses discussed the challenges that the citrus 
industries in their respective states were facing and what 
effects those challenges were having on small citrus growers 
and associated businesses. Mr. Severns described the 
devastating impact the drought and water policy in California 
are having on small citrus growers. The cost of water per acre/
foot has risen from $200 per acre/foot before the drought to as 
much as $1,300 per acre/foot, a 650 percent increase, which has 
made growing citrus economically unviable. This is causing 
small growers to plow under their groves. Mr. Black discussed 
Huanglongbing (HLB), or ``citrus greening,'' a bacterial 
disease that kills citrus trees and has devastated Florida's 
citrus crops and significantly increased the costs of producing 
an acre of citrus. Mr. Murden described the current Mexican 
fruit fly outbreaks in Texas that are ruining fruit and 
resulting in quarantines of the entire citrus growing region of 
South Texas. Finally, Dr. Rogers explained why it has been so 
difficult to detect and manage HLB effectively and discussed 
several promising short-term and long-term solutions that 
prolong the production life of infected citrus trees.

HEARING: ``MANIPULATION AND FRAUD IN THE REPORTING OF VA SMALL BUSINESS 
                                GOALS''

    On June 23, 2015, the Subcommittee on Investigations, 
Oversight and Regulation of the Committee on Small Business and 
the Subcommittee on Oversight and Investigations of the 
Committee on Veterans' Affairs met in Room 334 of the Cannon 
House Office Building for a hearing titled ``Manipulation and 
Fraud in the Reporting of VA Small Business Goals.''
    The witnesses for the hearing were: Mr. Jan Frye, Deputy 
Assistant Secretary and Senior Procurement Executive, Office of 
Acquisition and Logistics, Department of Veterans Affairs, 
Washington, DC; Mr. Thomas Leney, Executive Director, Office of 
Small and Disadvantaged Business Utilization, Department of 
Veterans Affairs, Washington, DC; Mr. John Shoraka, Associate 
Administrator, Office of Government Contracting and Business 
Development, Small Business Administration, Washington, DC; and 
Mr. Kevin Youel Page, Deputy Commissioner, Federal Acquisition 
Service, General Services Administration, Washington, DC.
    Mr. Frye outlined many of the infractions that have 
occurred at the VA. He recounted a litany of transactions and 
unauthorized commitments that diverted funds from both 
taxpayers and veterans. Mr. Leney explained the VA's commitment 
to awarding contracts to small businesses. In FY 2013, over 36 
percent of the agency's contracts went to small businesses. Mr. 
Shoraka discussed the small business contracting scorecard 
system. He also explained that in FY 2013, the federal 
government met the 23 percent goal for prime contracting 
dollars awarded to small businesses for the first time since 
2005.

  HEARING: ``GSA'S PROPOSED TRANSACTIONAL DATA RULE AND ITS EFFECT ON 
                           SMALL BUSINESSES''

    On June 25, 2015, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled 
``GSA's Proposed Transactional Data Rule and its Effect on 
Small Businesses.'' The hearing examined the General Services 
Administration's (GSA) March 4, 2015 proposed rule on 
transactional data reporting and its effects on small 
contractors.
    The witnesses for the hearing were: Ms. Sheila A. 
Armstrong, Partner, Morgan, Lewis & Bockius, LLP, Dallas, TX; 
Mr. Roger Waldron, President, The Coalition for Government 
Procurement, Washington, DC; Mr. John Stanford, Vice President, 
NextWin Services, Washington, DC, on behalf of Women Impacting 
Public Policy; and Mr. John Horan, Partner, McKenna Long & 
Aldridge, LLP, Washington, DC.
    Ms. Armstrong outlined the proposed rule, saying it 
requires monthly reports from a variety of GSA contractors, 
including schedule contractors and those who hold indefinite 
delivery, indefinite quantity contractors, and government-wide 
acquisition contracts. Ms. Armstrong was concerned about the 
time requirements that would be imposed on contractors if this 
rule was implemented. Mr. Waldron agreed that the proposed rule 
has a substantial compliance burden, and said GSA miscalculated 
the estimated time to complete the reports. He said this 
proposed rule would not ultimately provide GSA contracting 
officers with information to negotiate fair prices. Currently, 
price analysis is typically completed by looking at previous 
transactions. Mr. Stanford said aggregating price-related data 
should fall on GSA, not the private sector. He also believes 
that upgrading the systems to automatically collect this data 
would not only achieve the same end goal but also take the 
reporting burden off the private sector. Mr. Horan believes GSA 
underestimated how much time it would take to comply with the 
proposed rule. Furthermore, he explains that Mr. Stanford's 
proposed alternative idea was denied by GSA because the upgrade 
was too costly and unreliable.

   HEARING: ``MODERN TOOLS IN A MODERN WORLD: HOW APP TECHNOLOGY IS 
                     BENEFITING SMALL BUSINESSES''

    On July 23, 2015, the Subcommittee on Health and Technology 
of the Committee on Small Business met in 2360 Rayburn House 
Office Building for a hearing titled ``Modern Tools in a Modern 
World: How App Technology is Benefiting Small Businesses.'' The 
hearing examined how apps can improve businesses' day-to-day 
operations, increase efficiency, assist their marketing and 
outreach capabilities, and, ultimately, stimulate revenue and 
job growth.
    The witnesses for the hearing were: Mr. Morgan Reed, 
Executive Director, ACT--The App Association, Washington, DC; 
Patricia G. Greene, Ph.D, Paul T. Babson Chair in 
Entrepreneurial Studies, Babson College, Babson Park, MA; Mr. 
David Barrett, CEO, Expensify, San Francisco, CA; and Ms. 
Cassie Gray, Owner, ShopClementine, Ashfield, MA.
    In Chairwoman Radewagen's opening statement, she discussed 
this industry's importance for American innovation and noted 
that the app industry will continue to have a significant 
impact on the United States economy. Mr. Reed said he was 
confident the app industry will continue to have exponential 
growth. Ranking Member Moulton asked what Congress can do to 
help foster the app industry's continued growth. Ms. Gray 
observed that Congress should avoid placing barriers and ensure 
the internet continues to be a free and open venue for 
innovation.
    Mr. Reed discussed the rapid growth of the mobile app 
industry and how app products like the Square Reader are 
helping improve small business commerce. He then explained that 
mobile app technology is helping the health industry promote 
individual health as well as small and independent health 
practices. Ms. Greene discussed her experience with the Goldman 
Sachs 10,000 Small Businesses and the 10,000 Women programs. 
She said the programs are designed to provide entrepreneurs an 
education in management, business support services and 
advising, as well as access to capital. Mr. Barrett discussed 
his mobile application, Expensify, and how it helps businesses 
of all sizes create easy to use expense reports on the road. He 
also gave recommendations to Congress on how to support the 
mobile app industry including creating awareness of the 
resources and benefits of apps, supporting the ``gig'' economy, 
simplifying internet tax, and encouraging crowdfunding and 
innovation. Ms. Gray provided a firsthand account of her 
experience as an entrepreneur in the jewelry industry that 
sells on Etsy. She described how mobile apps have made her 
business more streamlined and accessible to more customers.

  HEARING: ``FINANCING MAIN STREET: HOW DODD-FRANK IS CRIPPLING SMALL 
                    LENDERS AND ACCESS TO CAPITAL''

    On September 17, 2015, the Subcommittee on Economic Growth, 
Tax and Capital Access of the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Financing Main Street: How Dodd-Frank is Crippling 
Small Lenders and Access to Capital.'' The hearing examined the 
effects of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Dodd-Frank) on small financial institutions and 
small business lending. It also reviewed whether regulations 
and other agency reactions to the 2008 financial crisis is now 
hindering business expansion by restricting the market for 
capital needed by small businesses.
    The witnesses were: Mr. B. Doyle Mitchell, Jr., President 
and CEO, Industrial Bank, Washington, DC, on behalf of the 
Independent Community Bankers of America; Mr. Scott Eagerton, 
President and CEO, Dixies Federal Credit Union, Darlington, SC, 
on behalf of the National Association of Federal Credit Unions; 
Mr. Marshall Lux, Senior Fellow, Mossavar-Rahmani Center for 
Business and Government, John F. Kennedy School of Government, 
Harvard University, Cambridge, MA; and Julia Gordon, Esq., 
Senior Director, Housing and Consumer Finance, Center for 
American Progress, Washington, DC.
    The witnesses provided testimony on the regulatory changes 
that have been promulgated as required by Dodd-Frank and the 
effect those have had on small business. Mr. Mitchell testified 
that the regulatory burden on his small community bank was 
fundamentally shifting the focus from ``serving customers to 
struggling to stay on top of ever-changing rules and 
guidance.'' He said that Section 1071 of Dodd-Frank would have 
unintended consequences on small financial institutions. Mr. 
Eagerton discussed the need for Congress to reevaluate the 
effects of Dodd-Frank on credit unions and pushed for the 
Consumer Financial Protection Bureau to use its authority to 
exempt credit unions from rules. Mr. Lux stated that research 
demonstrates the regulatory burden of Dodd-Frank is hampering 
small financial institutions and correlates to a reduction in 
small business lending. Ms. Gordon opined that Dodd-Frank 
exempted several small financial institutions and that other 
factors, such as a decline in home equity and long-term bank 
consolidation, were the primary reasons for declines in small 
business lending.

  HEARING: ``THE BLACKLIST: ARE SMALL BUSINESSES GUILTY UNTIL PROVEN 
                              INNOCENT?''

    On September 29, 2015, the Subcommittee on Contracting and 
Workforce and the Subcommittee on Investigations, Oversight and 
Regulations of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a joint hearing titled 
``The Blacklist: Are Small Businesses Guilty Until Proven 
Innocent?'' The hearing examined the ramifications of the 
Department of Labor and Federal Acquisition Regulatory 
Council's implementation of Executive Order 13,673 for small 
business government contractors and subcontractors.
    The witnesses for the hearing were: the Hon. Angela B. 
Styles, Chair and Partner, Crowell & Moring, Washington, DC; 
Mr. Theron M. Peacock, P.E., BSCP, Senior Principal/President, 
WOODS  PEACOCK Engineering Consultants, Alexandria, VA, 
on behalf of the American Council of Engineering Companies; Ms. 
Debbie Norris, Vice President, Human Resources, Merrick & 
Company, Greenwood Village, CO, on behalf of the Society for 
Human Resource Management; Mr. William J. Albanese, Sr., 
General Manager, A & A Industrial Piping, Inc., Fairfield, NJ, 
on behalf of the Mechanical Contractors Association of America 
and the Campaign for Quality Construction; the Hon. Anne Rung, 
Administrator, Office of Federal Procurement Policy, Office of 
Management and Budget, Washington, DC; and Mr. Lafe Solomon, 
Senior Labor Compliance Advisor, Office of the Solicitor, 
United States Department of Labor, Washington, DC.
    Ms. Styles highlighted her concerns about the Executive 
Order's effect, including: high compliance costs; a flawed 
initial regulatory flexibility analysis, as required by the 
Regulatory Flexibility Act; and the Executive Branch's 
inability to provide the most basic rationale for the necessity 
of the Executive Order. Mr. Peacock discussed the Executive 
Order's reporting costs, as well as the potential for damage to 
the relationship between prime and subcontractors. Ms. Norris 
said the increased costs her company would face would 
ultimately result in costlier contracts with the federal 
government. Mr. Albanese supported the Executive Order, saying 
it promotes high workforce standards and complements a number 
of key government proprietary interests. Ms. Rung explained 
that the Administration tried to mitigate the Executive Order's 
effect on small business, including making contracts worth less 
than $500,000 exempt from disclosure requirements. Mr. Solomon 
suggested alternatives to phase in the Executive Order.

 HEARING: ``THE CONSEQUENCES OF DOL'S ONE-SIZE-FITS-ALL OVERTIME RULE 
               FOR SMALL BUSINESSES AND THEIR EMPLOYEES''

    On October 8, 2015, the Subcommittee on Investigations, 
Oversight and Regulations of the Committee on Small Business 
met in Room 2360 of the Rayburn House Office Building for a 
hearing titled ``The Consequences of DOL's One-Size-Fits-All 
Overtime Rule for Small Businesses and their Employees.'' The 
hearing focused on the Department of Labor's (DOL) Regulatory 
Flexibility Act analysis of the compliance costs and burdens 
this regulation would place on small entities and their 
employees as well as other concerns regarding the regulation 
itself.
    The witnesses for the hearing were: Mr. Kevin Settles, 
President and CEO, Bardenay Restaurants and Distilleries, 
Boise, ID, on behalf of the National Restaurant Association; 
Mr. Ed Brady, President, Brady Homes Illinois, Bloomington, IL, 
on behalf of the National Association of Home Builders; Ms. 
Terry Shea, Co-Owner, Wrapsody, Inc., Bessemer, AL, on behalf 
of the National Retail Federation; and Mr. Ross Eisenbrey, 
Esq., Vice President, Economic Policy Institute, Washington, 
DC.
    Mr. Settles testified that the proposed threshold in DOL's 
proposed overtime rule was inappropriate for the restaurant 
industry and criticized the DOL for not extending the comment 
period on the rule. Mr. Brady testified that the overtime rule 
does not take into account regional differences in pay and 
would hurt the construction industry by limiting flexibility 
for workers and forcing employers to reclassify salaried 
workers as hourly workers. He also said the rule would make it 
more difficult for his construction business to predict costs 
for pricing homes. Ms. Shea testified that an increase in 
overtime eligibility will not necessarily mean an increase in 
overtime pay for the workforce. Instead, it will result in 
containing managers to work a 40-hour week, which will take 
away their flexibility, both personally and operationally. She 
said that every dollar spent on compliance burdens is one less 
that she could have used to grow her business and invest 
further in her employees and community. Mr. Eisenbrey testified 
that the rule should have increased the threshold further.

HEARING: ``MAXIMIZING MENTORING: HOW ARE THE SBA AND DOD MENTOR-PROTEGE 
                  PROGRAMS SERVING SMALL BUSINESSES?''

    On October 27, 2015, the Subcommittee on Contracting and 
Workforce met in Room 2360 of the Rayburn House Office Building 
for a hearing titled ``Maximizing Mentoring: How are the SBA 
and DoD Mentor-Protege Programs Serving Small Businesses?'' The 
hearing examined: (1) how the Small Business Administration 
(SBA) is implementing changes made to its mentor-protege 
programs of civilian agencies by Section 1347 of the Small 
Business Jobs Act of 2010 (Pub. L. No. 111-240), and Section 
1641 of the National Defense Authorization Act for Fiscal Year 
2013 (Pub. L. No. 112-239); (2) how the SBA and the Department 
of Defense (DoD) measure the effectiveness of mentor-protege 
relationships; and (3) whether there are opportunities for 
increased collaboration between the SBA and DoD programs. The 
hearing also reviewed the findings of the Government 
Accountability Office that encouraged post agreement tracking 
of mentor-protege relationships.
    The witnesses for the hearing were: Mr. Kenyata Wesley, 
Acting Director, Office of Small Business Programs, United 
States Department of Defense, Alexandria, VA; and Mr. A. John 
Shoraka, Associate Administrator of Government Contracting and 
Business Development, Small Business Administration, 
Washington, DC.
    Mr. Wesley expressed support for the mentor-protege 
program, saying that it is a source of strategic advantage that 
helps the United States maintain world-class weapons systems. 
DoD has formed government-led working groups to facilitate 
further innovation and new ideas with DoD acquisition 
professionals. DoD would like to implement a tiered development 
plan that would perform compatibility tests in the hopes of 
matching small business partners with large defense 
contractors. Mr. Wesley also provided the Committee with a 
breakout of the mentor-protege agreements currently in place. 
Mr. Shoraka explained the process the SBA has undertaken to 
implement a government-wide mentor-protege program. At the time 
of the hearing, the comment period for the proposed rule had 
closed, and the SBA was drafting a final rule that would be 
sent to the Office of Management and Budget's Office of 
Information and Regulatory Affairs for interagency review. The 
SBA believes that by expanding the mentor-protege program, more 
small businesses would have access to contracting 
opportunities, resources to grow their businesses, and 
opportunities to create jobs in their communities.

 HEARING: ``AN EXAMINATION OF CONTINUED CHALLENGES IN VA'S VETS FIRST 
                         VERIFICATION PROCESS''

    On November 4, 2015, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business and the 
Subcommittee on Oversight and Investigations of the Committee 
on Veterans' Affairs met in Room 334 of the Cannon House Office 
Building for a hearing titled ``An Examination of Continued 
Challenges in VA's Vets First Verification Process.'' This was 
a successor hearing to a March 19, 2013 joint hearing held by 
the Subcommittees titled ``Consistently Inconsistent: 
Challenges for Service-Disabled Veteran-Owned Small 
Businesses.'' This hearing provided an opportunity for the 
Subcommittees to receive an update on the status of the 
verification programs at the Department of Veterans Affairs 
(VA).
    The witnesses for the hearing were: Mr. William Shear, 
Director, Financial Markets and Community Investment, United 
States Government Accountability Office, Washington, DC; Mr. 
Quentin Aucoin, Assistant Inspector General for Investigations, 
United States Department of Veterans Affairs, Washington, DC; 
and Mr. Tom Leney, Executive Director, Office of Small and 
Disadvantaged Business Utilization, United States Department of 
Veterans Affairs, Washington, DC.
    Mr. Shear's testimony focused on the changes the Government 
Accountability Office (GAO) has seen in the VA's verification 
program. Specifically, Mr. Shear was concerned that the agency 
placed a higher priority on addressing immediate operational 
challenges over long-term strategic focus issues for the 
program. However, GAO discovered that recently veterans 
reported having better interactions with the program; denials 
have decreased from 66 percent in 2012 to 5 percent in 2015. 
Mr. Aucoin discussed fraud and abuse in the program which led 
to the investigation. For example, there were ``pass through'' 
schemes where non veteran-owned businesses were performing the 
majority of the contract and the Veteran-Owned Small Business 
(VOSB) was simply passing on the work to ineligible businesses. 
There were also cases of businesses falsely claiming that a 
veteran owned 51 percent or more of a business for advantages 
in bidding for federal contracts. Mr. Aucoin said he would 
continue to seek out weaknesses in the program to ensure that 
legitimate VOSBs have fair opportunity for federal contracts. 
Mr. Leney discussed the progress the VA has made in the 
verification program. For example, there have been improvements 
in educational outreach efforts designed to help veterans 
understand the requirements of the program. Mr. Leney also 
mentioned some of the differences between the VA's verification 
process and the one used at the SBA. He said the biggest 
difference between the two programs is that in FY 2015, the VA 
made 4,500 determinations, while the SBA made only 40.

FIELD HEARING IN NEVADA: ``REGULATORY OVERLOAD: THE EFFECTS OF FEDERAL 
                      REGULATIONS ON SMALL FIRMS''

    On November 6, 2015, the Subcommittee on Investigations, 
Oversight and Regulations of the Committee on Small Business 
met in North Las Vegas City Hall in Las Vegas, NV, for a field 
hearing titled ``Regulatory Overload: The Effects of Federal 
Regulations on Small Firms.'' The Subcommittee examined several 
federal regulations (either in development or that have been 
finalized) and their impacts on small businesses.
    The witnesses for the hearing were: Mr. Spencer Hafen, 
President & CEO, Nevada Bank and Trust Company, Caliente, NV, 
on behalf of the Nevada Bankers Association; Ms. Robin E. 
Simmers, CEO, Pahranagat Valley Federal Credit Union, Alamo, 
NV, on behalf of the Nevada Credit Union League; Mr. David 
Jennings, Board Member, Southern Nevada Home Builders 
Association, Las Vegas, NV; and Mr. Mendis Cooper, General 
Manager, Overton Power District Number 5, Overton, NV, on 
behalf of the Nevada Rural Electric Association.
    Mr. Hafen, a Nevada community banker, discussed new 
complicated financial regulations, such as those required by 
the Dodd-Frank Wall Street Reform and Consumer Protection Act 
and mortgage regulations, adversely affect small businesses. 
Ms. Simmers echoed many of the same regulatory concerns from 
the perspective of the credit unions. Mr. Jennings stated that 
regulations in the home building industry adversely affect 
small home builders because they cannot spread the burden of 
the cost as effectively as larger companies. Mr. Cooper 
addressed how emissions caps and right-of-way permits to build 
power infrastructure are both increasing costs for energy 
companies in Nevada.

        HEARING: ``CONTINUING CHALLENGES FOR SMALL CONTRACTORS''

    On November 18, 2015, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled 
``Continuing Challenges for Small Contractors.'' The hearing 
began establishing a record of legislative reforms that were to 
be marked up for the Fiscal Year 2017 National Defense 
Authorization Act.
    The witnesses for the hearing were: Ms. Anne Crossman, Head 
Revolutionary, Completed Systems, Oakton, VA, on behalf of 
Women Impacting Public Policy; Mr. Edward T. DeLisle, Partner 
and Co-Chair, Federal Contracting Group, Cohen Seglias Pallas 
Greenhall & Furman PC, Philadelphia, PA, on behalf of the 
Associated General Contractors of America; Mr. Michael D. 
Janeway, President and CEO, APG Technologies, LLC, Sterling, 
VA, on behalf of the National Small Business Association; and 
Ms. Karen Ward, President and CEO, WESSGRP, Fredericksburg, VA, 
on behalf of the U.S. Women's Chamber of Commerce.
    Ms. Crossman noted that the length of time between the 
Request for Proposal and contract award date adversely affects 
small contractors, since many small contractors require teaming 
and working with competitors as partners. She strongly urged 
greater transparency for federal agency scorecards. Mr. DeLisle 
asked that prime contractors be allowed to report small 
business subcontracting at all tiers when reporting 
subcontracting goals. Mr. Janeway warned that subcontracting 
plans are rarely met because the federal government does not 
enforce these goals on prime contractors. Ms. Ward stressed a 
``maximum practical opportunity'' that would ensure the money 
allocated to subcontractors was adequate for the work that 
would be performed. Chairman Hanna agreed with many of the 
witnesses' testimony, saying subcontracting goals are being 
used to paint a rosy picture rather than to capture reality.

  HEARING: ``IMPROVING SIZE STANDARDS FOR SMALL FARMERS AND RANCHERS''

    On November 19, 2015, the Subcommittee on Agriculture, 
Energy, and Trade of the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Improving Size Standards for Small Farmers and 
Ranchers.'' The hearing examined H.R. 3714, the Small 
Agriculture Producer Size Standards Improvements Act of 2015, 
which was introduced by Representative Mike Bost on October 8, 
2015.
    The witnesses for the hearing were: Rep. Mike Bost, United 
States House of Representatives, Washington, DC; Nicholas D. 
Paulson, Ph.D., Associate Professor, Agricultural and Consumer 
Economics, University of Illinois at Urbana-Champaign, Urbana, 
IL; Mr. Jeff Beasley, Co-owner, Beasley & Sons Livestock, Creal 
Springs, IL, on behalf of the National Cattlemen's Beef 
Association; Mr. Larry Burgin, Owner, Mushkoday Farm, Delhi, 
NY, on behalf of the National Council of Farmer Cooperatives; 
and Mr. Robert Guenther, Senior Vice President, Public Policy, 
United Fresh Produce Association, Washington, DC.
    Mr. Bost stated that because of relatively low commodity 
prices, thin margins, increased land costs, and other factors, 
the current income-based agriculture size standard of $750,000 
needs revision. Dr. Paulson highlighted the inflation figures 
since the size standard was last updated 15 years ago. Mr. 
Beasley gave a firsthand account of his family's farm and how 
huge spikes in the cost of land, the price of products, and the 
average value of farm equipment results in family farms 
frequently exceeding the size standard and are therefore 
ineligible for Small Business Administration loan programs. Mr. 
Burgin discussed how the nation's dairy industry is adversely 
affected by the current agriculture size standards. Mr. 
Guenther explained that produce operations are also concerned 
about the ineffectiveness of the current size standards.

HEARING: ``EMPLOYERS OF CHOICE: HOW THE TAX EXTENDER DEBATE WILL AFFECT 
                            SMALL BUSINESS''

    On December 3, 2015, the Subcommittee on Economic Growth, 
Tax and Capital Access held a hearing titled ``Employers of 
Choice: How the Tax Extender Debate Will Affect Small 
Business.'' The hearing addressed certain tax policies, 
including the seemingly annual tax extender debate that affects 
the ability of small firms to attract and retain employees.
    The witnesses for the hearing were: Mr. Jason Duff, Founder 
and CEO, Bellefontaine Ohio Properties, Ltd., Huntsville, OH, 
on behalf of the Small Business and Entrepreneurship Council; 
Mr. Todd Kriegel, CEO, Global Precision Parts, Inc., Van Wert, 
OH, on behalf of the Precision Machined Products Association; 
Mr. Rich Shavell, CPA, CVA, CCIFP, President, Shavell & 
Company, P.A., Boca Raton, FL, on behalf of the Associated 
Builders and Contractors; and Thomas J. Nichols, Esq., Meissner 
Tierney Fisher & Nichols S.C., Milwaukee, WI, on behalf of the 
S Corporation Association.
    Mr. Duff testified that practical and stable expensing 
levels in the tax code are vital to small firms. He said 
businesses like his have been planning and operating under the 
outdated Section 179 expensing level of $25,000 instead of the 
increased levels of previous years and the uncertainty of what 
the level will be severely affects his investment decisions. 
Mr. Kreigel said he believes that small businesses can continue 
driving the economy and serve as the backbone of our nation, 
but Washington's inaction on comprehensive tax reform and the 
continued expiration of key tax provisions creates a globally 
uncompetitive environment for small businesses manufacturing in 
America. Mr. Shavell stated that small businesses are the 
employer of choice for most Americans, but without a commitment 
by Congress to comprehensive tax reform and the elimination of 
the uncertainty of the tax extender debate, this status may be 
soon jeopardized. Mr. Nichols stated that in recent years, 
compliance with the income tax system has been made much more 
difficult for his clients without any apparent offsetting 
positive revenue impact for the government. He stressed 
simplicity and permanence as two key issues Congress should 
focus on within the tax reform debate.

  HEARING: ``SUPPORTING SUCCESS: EMPOWERING SMALL BUSINESS ADVOCATES''

    On December 19, 2015, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled 
``Supporting Success: Empowering Small Business Advocates.'' 
The hearing was a part of the Subcommittee's ongoing effort to 
improve the viability of small contractors, and examine how 
small business advocates at the Small Business Administration 
(SBA) and at other federal agencies support small business 
success.
    The witnesses for the hearing were: the Hon. Angela B. 
Styles, Chair and Partner, Crowell & Moring LLP, Washington, 
DC, testifying on behalf of the Defense Industry Initiative on 
Business Ethics and Conduct; Mr. Davy G. Leghorn, Assistant 
Director, National Veterans Employment and Education Division, 
The American Legion, Washington, DC; Ms. ML Mackey, Chief 
Executive Officer, Beacon Interactive Systems, Cambridge, MA, 
testifying on behalf of the National Defense Industrial 
Association; and Ms. Tracy Balazs, Founder, President and Chief 
Executive Officer, FSR, Annapolis, MD, testifying on behalf of 
US Pan Asian American Chamber of Commerce.
    Ms. Styles testified that it is difficult for even the 
largest of federal contractors to understand and comply with 
the myriad of complex federal regulations, let alone small 
businesses. Mr. Leghorn spoke about the challenge of government 
contracting for veterans and service-disabled veterans. 
Specifically, he stressed the differences between procurement 
policy at the SBA and the Department of Veterans Affairs as 
well as the abuse and lack of accountability in federal 
government purchase cards. Ms. Mackey supports the Committee's 
efforts to correct these issues and said the Committee's 
federal procurement legislation in the Fiscal Year 2016 
National Defense Authorization Act will help to ensure a fairer 
acquisition system. Finally, Ms. Balazs testified that 
sometimes the SBA can struggle ensuring interpretations of 
standardized policies are the same throughout the agency. She 
explained that this lack of attention to detail can sometimes 
be detrimental to fragile small businesses.

  HEARING: ``SBA'S OFFICE OF INTERNATIONAL TRADE: GOOD FOR BUSINESS?''

    On January 11, 2016, the Subcommittee on Agriculture, 
Energy and Trade of the Committee on Small Business met in room 
2360 of the Rayburn House Office Building for a hearing titled 
``SBA's Office of International Trade: Good for Business?'' The 
hearing examined efforts by the Small Business Administration's 
(SBA) Office of International Trade (OIT) to increase exports 
and promote United States small businesses' participation in 
international trade. Small businesses offer a tremendous 
opportunity to increase American exports. The United States 
Department of Commerce continues to serve as the primary 
conduit for American businesses seeking international market 
opportunities. However, in 2010 Congress directed the SBA to 
increase its role in export activities, including export 
counseling and financing.
    The witness for the hearing was Ms. Eileen Sanchez, 
Associate Administrator, Office of International Trade, United 
States Small Business Administration, Washington, DC.
    In her testimony, Ms. Sanchez explained some of the 
accomplishments of OIT. In Fiscal Year 2015, SBA guaranteed 
$1.45 billion in loans to 1,513 small business exporters. Ms. 
Sanchez also highlighted the office's improvements to the State 
Trade and Export Promotion, or STEP program. In FY 2015, the 
SBA awarded $17.4 million in STEP grants to 40 states, which 
aimed to help small businesses further integrate with foreign 
markets through training and trade missions. Furthermore, the 
office collaborated with the U.S. Trade Representative on both 
the Trans-Pacific Partnership and the Transatlantic Trade and 
Investment Partnership to ensure that small business concerns 
are met during current trade negotiations. She ended her 
testimony assuring the committee that the office is committed 
to helping small businesses compete in international markets. 
Chairman Curbelo thanked Ms. Sanchez for testifying and noted 
that in the era of limited budgets, the Committee needs proof 
that OIT's mission is realized.

  HEARING: ``OVERSIGHT OF THE OFFICE OF INVESTMENT AND INNOVATION AT 
                                 SBA''

    On January 12, 2016, the Subcommittee on Health and 
Technology of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled 
``Oversight of the Office of Investment and Innovation at 
SBA.'' The Office of Investment and Innovation (OII) 
administers the Small Business Innovation Research (SBIR) and 
Small Business Technology Transfer (STTR) programs in addition 
to the Small Business Investment Company (SBIC) Program. OII 
also administers several SBA-created programs (not specifically 
authorized in the Small Business Act or Small Business 
Investment Act of 1958) such as the SBIC Impact Fund, SBIC 
Early Stage Fund, and the Growth Accelerator Fund Competition.
    The witness for the hearing was Mr. Mark Walsh, Associate 
Administrator, Office of Investment and Innovation, Small 
Business Administration, Washington, DC. Accompanying Mr. Walsh 
were Mr. John Williams, Director, Innovation and Technology, 
Small Business Administration, Washington, DC, and Ms. Carol 
Fendler, Director, Licensing and Programming Standards, SBIC 
Program, Small Business Administration, Washington, DC.
    Mr. Walsh shared several success stories of businesses that 
utilized OII programs to build their businesses. Members of the 
Subcommittee pressed the witnesses on the results of an 
exhaustive Government Accountability Office (GAO) report that 
stated the SBA had serious management problems. Mr. Walsh 
stated that OII would make it a priority to address the 11 of 
69 recommendations made by the GAO over the course of several 
years that the SBA had ignored. Mr. Williams said that he would 
do his best to deliver the statutorily mandated annual reports 
for the SBIR and STTR programs that have been in arrears for 
each of the last 3 years. Ms. Fendler stated that OII would 
make a concerted effort to update the SBA's standard operating 
procedures as they pertain to the SBIC program.

 HEARING: ``SBA MANAGEMENT REVIEW: OVERSIGHT OF SBA'S ENTREPRENEURIAL 
                         DEVELOPMENT PROGRAMS''

    On February 2, 2016, the Subcommittee on Economic Growth, 
Tax and Capital Access of the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``SBA Management Review: Oversight of SBA's 
Entrepreneurial Development Programs.'' At the specific 
direction of Congress, the Small Business Administration (SBA 
or Agency) operates programs to provide outreach and technical 
assistance to small businesses such as: the Small Business 
Development Center (SBDC) Program; SCORE Program; Women's 
Business Center (WBC) Program; and Veterans Business Outreach 
Center (VBOC) Program. In addition, using its general authority 
to aid small businesses, the SBA also creates initiatives that 
frequently duplicate those that Congress has specifically 
directed the Agency to implement.
    The Committee, on a bipartisan basis, has criticized the 
efforts to divert funds and agency resources from the 
statutorily authorized programs to SBA-created initiatives. 
Prior to the hearing, the Government Accountability Office 
released a report on the operation of the SBA, and found 
numerous deficiencies in SBA management. As a follow-up to the 
study, this hearing examined SBA's entrepreneurial development 
programs and whether improvements within the Office of 
Entrepreneurial Development (OED) and the Office of Veterans 
Business Development are necessary to ensure that the SBA is 
effective in helping small businesses without wasting federal 
funds through the operation of duplicative programs.
    The witnesses for the hearing were: Ms. Tameka Montgomery, 
Associate Administrator, Office of Entrepreneurial Development, 
Small Business Administration, Washington, DC; and Ms. Barb 
Carson, Associate Administrator, Office of Veterans Business 
Development, Small Business Administration, Washington, DC.
    At the hearing, Subcommittee Chairman Huelskamp questioned 
Ms. Montgomery about the Entrepreneurial Development Management 
Information System (EDMIS), the database used by SBA to track 
performance metrics for entrepreneurial programs that had 
recently suffered an upgrade failure. Ms. Montgomery stated 
that there was no current contract and that a prior contract of 
about $1 million dollars that was stopped when it was 
determined that the system being developed would not be 
effective. Chairman Huelskamp raised concerns that OED was not 
gathering performance metrics needed to evaluate the programs 
and that the roughly $1 million dollars had been wasted. Rep. 
Trent Kelly asked Ms. Carson about the absence of performance 
metrics for programs aimed at assisting veterans. She stated 
that the SBA had just established a system to record data on 
the Boots to Business Program, a SBA-created initiative, and 
expected to have data the next month. Chairman Huelskamp 
concluded the hearing by reiterating the request for the SBA to 
provide the Committee the performance metrics and data the SBA 
is using to evaluate its programs to ensure that scarce 
taxpayer dollars are being spent carefully on effective 
programs with proven metrics.

 HEARING: ``SBA MANAGEMENT REVIEW: OFFICE OF GOVERNMENT CONTRACTS AND 
                         BUSINESS DEVELOPMENT''

    On February 3, 2016, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met for a hearing 
titled ``SBA Management Review: Office of Government Contracts 
and Business Development.'' This hearing examined the Office of 
Government Contracts and Business Development (GCBD) and the 
personnel in the Office of Field Operations assigned to GCBD 
programs at the Small Business Administration (SBA).
    GCBD oversees size standards, contracting policy, the small 
business contracting program, the 8(a) Business Development 
Program, the HUBZone program, the Women-Owned Small Business 
program, the Economically-Disadvantaged Women-Owned Small 
Business program, the Service-Disabled Veteran-Owned Small 
Business Program, and other programs.
    The witness for the hearing was John Shoraka, Associate 
Administrator, Office of Government Contracts and Business 
Development, United States Small Business Administration, 
Washington, DC.
    Mr. Shoraka highlighted many of the initiatives the federal 
government has made to promote small business contracting as 
well as the successes small businesses have recently achieved 
in the federal marketplace. For example, in FY 2013 and 2014, 
the federal government exceeded the 23 percent small business 
contracting procurement goal, and estimated that they would 
also reach that goal in FY 2015. Furthermore, his office said 
the federal government was on track to meet the Women-Owned 
Small Business goal of 5 percent for the first time since the 
program's inception. Mr. Shoraka has also sought to improve 
contracting opportunities for small businesses by implementing 
recommendations made by both the Government Accountability 
Office and the SBA Inspector General.

HEARING: ``EXPORT CONTROL REFORM: CHALLENGES FOR SMALL BUSINESS? (PART 
                                  I)''

    On February 10, 2016, the Subcommittee on Agriculture, 
Energy and Trade of the Committee on Small Business met in Room 
2360 of the Rayburn House Office Building for a hearing titled 
``Export Control Reform: Challenges for Small Business? (Part 
I).'' The purpose of the hearing was to receive testimony on 
the ongoing Export Control Reform Initiative (ECR Initiative) 
and the implications for America's small exporters.
    The witnesses for the hearing were: Ms. Andrea Appell, 
Director, BPE Global, San Francisco, CA; Ms. Jennifer 
Robertson-Ahrens, President, Robertson Forwarding Company, 
Miami, FL; Mr. Craig T. Ridgley, Vice President and Managing 
Partner, Trade Compliance Group, Washington, DC; and Greg 
Quarles, Ph.D., Chief Scientist, The Optical Society, 
Washington, DC.
    Ms. Appell outlined the Export Control Reform Initiative 
and described some of the issues her company has experienced 
during the implementation. Specifically, she mentioned that her 
clients struggle with missing, incomplete, or contradictory 
definitions of underlying export principles. Ms. Robertson-
Ahrens also stressed concerns regarding this transition 
process, most notably delays at Customs and Border Protection 
and confusion surrounding new classification of certain items. 
Mr. Ridgley echoed this confusion, and said small businesses 
are disproportionately affected by export controls. He also 
said a survey of small- and medium-sized enterprises would be 
beneficial to see what specifically has inhibited small firms 
during this process. Finally, Dr. Quarles advocated for 
simplifying the currently confusing regulatory process. He also 
warned that the upcoming export control rule changes to be 
finalized in the International Traffic in Arms Regulations 
(ITAR) and U.S. Munitions List (USML) Category XII will 
generate confusion, and need to be clarified through seminars.

 HEARING: ``OVERSIGHT OF THE OFFICE OF ADVOCACY AND THE OFFICE OF THE 
                    NATIONAL OMBUDSMAN AT THE SBA''

    On February 10, 2016, the Subcommittee on Investigations, 
Oversight and Regulations of the Committee on Small Business 
met for a hearing titled ``Oversight of the Office of Advocacy 
and the Office of the National Ombudsman at the SBA.'' The 
hearing examined the Office of the Chief Counsel for Advocacy 
(Office of Advocacy) and the Office of the Small Business and 
Agriculture Regulatory Enforcement Ombudsman (Office of the 
National Ombudsman) within the Small Business Administration 
(SBA).
    The Office of Advocacy is housed within but independent 
from the SBA and managed by the Chief Counsel for Advocacy, a 
Senate-confirmed, Presidential appointee. Its primary mission 
is to independently represent the interests of small businesses 
as new regulations are developed. It mainly does so by 
monitoring agency compliance with the Regulatory Flexibility 
Act of 1980 (RFA) and reporting to Congress annually. The 
Office of the National Ombudsman at SBA is managed by the Small 
Business and Agriculture Regulatory Enforcement Ombudsman, who 
is appointed by the SBA Administrator. The Office of the 
National Ombudsman was created to help reduce incidents of 
excessive and abusive enforcement actions by federal agencies 
and its primary duty is to give small businesses an opportunity 
to confidentially comment on agency regulatory enforcement 
activities.
    The witnesses for the hearing were: The Honorable Darryl L. 
DePriest, Chief Counsel for Advocacy, Small Business 
Administration, Washington, DC; and Rear Admiral Earl L. Gay, 
USN (Ret.), Small Business and Agriculture Regulatory 
Enforcement Ombudsman, Small Business Administration, 
Washington, DC.
    The hearing focused on management challenges that both 
offices have confronted and RFA compliance issues the Office of 
Advocacy raised in comment letters in Fiscal Year (FY) 2015. 
Mr. DePriest reported on the Office of Advocacy's efforts to 
ensure federal agencies complied with the RFA in FY 2015. 
During that time, the office hosted 21 roundtables on a wide 
variety of regulatory proposals and sent 28 comments letters to 
15 different agencies that raised RFA compliance concerns. He 
noted that the Office of Advocacy's efforts resulted in cost 
savings for small businesses, greater consideration of small 
business concerns, and improved compliance with the RFA. 
Admiral Gay discussed the Office of the National Ombudsman's 
efforts to ensure existing regulations are fairly enforced. 
During FY 2015, the office conducted more than 80 outreach 
events, 4 regional regulatory fairness hearings, and 1 national 
hearing in Washington, DC. He also committed to ensuring that 
the Office of the National Ombudsman adheres to statutory 
requirements in selecting small business owners, operators and 
officers to serve on Regional Regulatory Fairness Boards. At 
the conclusion of the hearing, Chairman Hardy stated that the 
Subcommittee will continue to closely monitor both offices' 
activities and work to ensure that all federal agencies comply 
with the RFA.

FIELD HEARING IN NEW YORK: ``OVERCOMING EXPORTING CHALLENGES FOR SMALL 
                              BUSINESSES''

    On February 22, 2016, the Subcommittee on Agriculture, 
Energy and Trade of the Committee on Small Business met at 
Bramson Ort College in Forest Hills, New York for a field 
hearing titled ``Overcoming Exporting Challenges for Small 
Businesses.'' The hearing examined the hurdles that small 
businesses face in entering the international trade arena and 
the steps policymakers can take to increase exports and expand 
the role of United States small businesses in global markets.
    The witnesses for the hearing were: Mr. Pascual Castano, 
Business Advisor, NYS SBDC, Brooklyn, NY; and Ms. Toni Corsini, 
NY/NJ Regional Manager, Office of International Trade, Small 
Business Administration, New York, NY.
    The hearing focused on government programs in New York that 
facilitate exports. Mr. Castano outlined the role of the New 
York Small Business Development Center and their current 
initiatives. Ms. Corsini detailed the efforts of her office to 
assist New York and New Jersey small business exporters. She 
noted that in 2015, through the State Trade and Export 
Promotion program, New York and New Jersey were operating with 
grants of $664,000 for New York and $498,000 for New Jersey. 
Chairman Chabot emphasized that trade is a mechanism for small 
business growth, stating that new opportunities will be created 
for small businesses as other nations continue to grow and 
develop their economies and that small businesses have the most 
to gain from increased trade.

 HEARING: ``HOTLINE TRUTHS: ISSUES RAISED BY RECENT AUDITS OF DEFENSE 
                             CONTRACTING''

    On February 25, 2016, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled 
``Hotline Truths: Issues Raised by Recent Audits of Defense 
Contracting.'' As part of the Subcommittee's ongoing efforts to 
identify waste, fraud and abuse in federal contracting and to 
ensure that small contractors have the opportunity to compete, 
the Subcommittee heard from the Department of Defense Inspector 
General (DODIG) concerning the results of two recent audits it 
conducted.
    The witnesses for the hearing were: Mr. Michael Roark, 
Assistant Inspector General for Contract Management and 
Payments, Office of the Inspector General, Department of 
Defense, Alexandria, VA; and Mr. Chuck Spence, President, 
Association of Procurement Technical Assistance Centers, Salt 
Lake City, UT.
    Mr. Roark outlined his office's audits of the Marine Corps 
Regional Contracting Office-National Capital Region (RCO-NCR) 
and the Marine Corps Systems Command (MCSC). He addressed 
whether the Marine Corps awarded a sufficient number of 
contracts and whether they held large prime contractors 
accountable for meeting small business subcontracting goals. 
Mr. Roark concluded by saying that RCO-NCR and MCSC contracting 
officials did not ensure that prime contractors provided small 
businesses adequate subcontracting opportunities. Therefore, 
the DODIG gave recommendations to both offices in order to 
ensure that they improve subcontracting goal compliance.
    Mr. Spence agreed that federal agencies frequently fail to 
ensure subcontracting goals are met. He believes H.R. 4341, 
introduced by Chairman Chabot and Ranking Member Velazquez is a 
positive step by, ``clarifying the language and definitions of 
contracting provisions in the Small Business Act--as well as 
promoting greater transparency in goaling and accountability in 
execution.'' He also provided his own recommendations toward 
improving small business subcontracting goals, most notably, 
increasing the size of SBA's Procurement Center Representatives 
and Commercial Market Representatives.
    Chairman Hanna concluded the hearing by emphasizing the 
importance of meeting subcontracting goals, saying that if they 
are unable to be met, the acquisition process is in question.

   FIELD HEARING IN MASSACHUSETTS: ``COMMERCIALIZING ON INNOVATION: 
REAUTHORIZING THE SMALL BUSINESS INNOVATION RESEARCH AND SMALL BUSINESS 
                 TECHNOLOGY TRANSFER PROGRAMS PART II''

    On March 8, 2016 at the Lynn Council Chambers in Lynn, MA, 
the Subcommittee on Contracting and the Workforce of the 
Committee on Small Business met for a field hearing titled 
``Commercializing on Innovation: Reauthorizing the Small 
Business Innovation Research and Small Business Technology 
Transfer Programs Part II.'' Acting Chairman Richard Hanna 
gaveled the hearing to order and yielded to Ranking Member Seth 
Moulton. This hearing was the second of two hearings the 
Committee conducted examining reauthorization and potential 
improvements to the Small Business Innovation Research (SBIR) 
and Small Business Technology Transfer (STTR) programs.
    The witnesses for the hearing were: Ms. Ann Eskesen, 
President, Innovation Development Institute LLC, Swampscott, 
MA; B. David Green, Ph.D., President and CEO, Physical Sciences 
Inc., Andover, MA; Charles E. Kolb, Ph.D., President, Aerodyne 
Research, Inc., Billerica, MA; and Mr. Walter M. (Jerry) Bird, 
President, MassVentures, Boston, MA.
    Ms. Eskesen started the hearing by talking about her prior 
involvement in developing, passing, and implementing the 
original SBIR legislation more than 30 years ago. She 
illustrated the program's successes through several charts, and 
advocated for the reauthorization of the program. Dr. Green not 
only advocated for SBIR's renewal, but also gave 
recommendations on how to improve it. Specifically, he asked to 
increase the percentage of federal agency R&D SBIR funding from 
three percent to five percent over the next decade. Dr. Kolb 
recounted his company's research successes made possible 
through SBIR, saying from 2000 to 2015 products made through 
the program's funding have earned $80 million in sales. Mr. 
Bird discussed his company's successful START program, which 
provides up to three additional years of funding for SBIR/STTR 
projects. He said that the START program should serve as a 
national model for how to best utilize the SBIR/STTR programs.

HEARING: ``RISKY BUSINESS: EFFECTS OF NEW JOINT EMPLOYER STANDARDS FOR 
                             SMALL FIRMS''

    On March 17, 2016, the Subcommittee on Investigations, 
Oversight and Regulations of the Committee on Small Business 
met in Room 2360 of the Rayburn House Office Building for a 
hearing titled ``Risky Business: Effects of New Joint Employer 
Standards on Small Firms.'' The hearing examined the 
consequences of new federal joint employer standards for small 
businesses.
    In 2015, the National Labor Relations Board (NLRB) 
announced a revised joint employer standard in Browning-Ferris 
Industries of California, Inc. (Browning-Ferris) for the 
purposes of the National Labor Relations Act (NLRA). In 2016, 
the Department of Labor (DOL) issued guidance to explain when 
two separate employers could be deemed joint employers and 
found jointly liable for the purposes of the Fair Labor 
Standards Act and the Migrant and Seasonal Worker Protection 
Act. Small and large businesses in variety of business 
relationships--user-supplier, contractor-subcontractor, 
franchisor-franchisee, and others--could be held liable for 
another business's compliance with federal labor laws if they 
are determined to be a joint employer.
    The witnesses for the hearing were: Mr. Vinay Patel, 
President and CEO, Fairbrook Hotels, Chantilly, VA, on behalf 
of the Asian American Hotel Owners Association; Mr. Danny 
Farrar, CEO and Founder, SoldierFit, Frederick, MD, on behalf 
of the Coalition to Save Local Businesses; Mr. Harris Freeman, 
Professor of Legal Research and Writing, Western New England 
School of Law, Springfield, MA; and Mr. Kurt Larkin, Partner, 
Hunton & Williams LLP, Richmond, VA.
    The panel discussed the new joint employer standards and 
the ramifications for small businesses. Mr. Patel stated that 
the new NLRB joint employer standard threatens the franchise 
business model because franchisors will assert control over the 
day-to-day operations of their franchisees as they seek to 
mitigate potential liability. In addition, he said the DOL has 
created a regime based on an ambiguous standard of ``economic 
realities'' which reflects a mangled understanding of how 
hotels such as his operate. Mr. Farrar stated that the NLRB 
joint employer standard, which is based on indirect or 
unexercised reserved control, is vague and jeopardizes business 
partnerships in numerous industries. Mr. Farrar also said as a 
small franchisor he was unsure how much help he could provide 
to his franchisees without running afoul of the new standard 
because it is unclear. Mr. Freeman stated that the NLRB acted 
within its authority in announcing the new joint employer 
standard. Mr. Larkin described how the new NLRB joint employer 
standard is a significant departure from decades of established 
precedent and is both theoretically limitless and practically 
unworkable. Furthermore, he stated that uncertainty created by 
the new standard will have unintended legal consequences and 
negative economic effects, as firms struggle to understand 
their potential liability under the standard. In closing the 
hearing, Chairman Hardy vowed to continue working to address 
the confusion and challenges that the new joint employer 
standards are creating for small businesses.

 HEARING: ``LIP SERVICE BUT LITTLE ELSE: FAILURE OF THE SMALL BUSINESS 
                     HEALTH INSURANCE TAX CREDIT''

    On March 22, 2016, the Subcommittee on Economic Growth, 
Tax, and Capital Access of the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Lip Service but Little Else: Failure of the Small 
Business Health Insurance Tax Credit.'' The hearing examined 
the small business health insurance tax credit enacted as part 
of the Patient Protection and Affordable Care Act of 2010.
    The Subcommittee examined the efficacy of the small 
business health insurance tax credit, which was intended to 
provide an incentive for small employers to provide health 
insurance and to make insurance more affordable. The credit was 
available for tax years beginning after December 31, 2009. The 
United States Government Accountability Office (GAO) released a 
report in May 2012 examining the credit and its utility in 
promoting employer-provided health insurance coverage in small 
businesses. A subsequent GAO study released in March 2015 in 
conjunction with this hearing updated some of the relevant 
data. The hearing examined whether the credit was effective and 
analyzed the factors that contributed to its ultimate 
performance.
    The witnesses for the hearing were: Mr. James McTigue, Jr., 
Director, Strategic Issues, United States Government 
Accountability Office, Washington, DC; Mr. Harold Jackson, 
Executive Chairman, Buffalo Supply, Inc., Lafayette, CO, on 
behalf of the U.S. Chamber of Commerce; Ms. Holly Wade, 
Director, Research & Policy Analysis, NFIB Research Foundation, 
Washington, DC; and Mr. Michael Ricco, Quality Manager, AEEC, 
LLC, Reston, VA, on behalf of the U.S. Women's Chamber of 
Commerce.
    At the hearing, a single panel of private sector witnesses 
detailed a number of problems with the credit's design and how 
they contributed to its very low usage. Mr. McTigue discussed 
GAO's findings regarding the under-utilization of the Small 
Employer Health Insurance Tax Credit. He said that 
underutilization was due to a lack of awareness of the credit, 
costs, complexity, and the fact that few small employers 
qualify for the maximum credit amount. Mr. Jackson gave a 
firsthand account of his company's struggle to continue to 
provide employee health benefits as well as his struggle and 
ultimate failure to claim the Small Employer Health Insurance 
Tax Credit. Ms. Wade claimed the tax credit is ineffective for 
four reasons: (1) It was offered to businesses least likely to 
offer health insurance; (2) its complexity; (3) its temporary 
nature; and (4) its narrow eligibility requirements. Mr. Ricco 
agreed that the eligibility standards are too narrow, and that 
his business was ineligible for a number of reasons.

      FIELD HEARING IN CALIFORNIA: ``CHALLENGES FOR SMALL DEFENSE 
                             CONTRACTORS''

    On April 5, 2016, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in the City 
Council Chambers of Palmdale City Hall Chamber Room in 
Palmdale, CA for a field hearing titled ``Challenges for Small 
Defense Contractors.'' The hearing examined the opportunities 
and the challenges in doing business with the Department of 
Defense.
    The witnesses for the hearing were: Mr. Don Rhea, Vice 
President, Clancy JG International, Lancaster, CA; Ms. Virginia 
Villa, Owner, West Pacific Electric Company, Lemoore, CA; and 
Mr. Kirk Flittie, General Manager, Unmanned Systems, Simi 
Valley, CA.
    Mr. Rhea stressed the importance of small businesses 
applying for prime government contracts, but warned that their 
ability to do so is diminishing. Ms. Villa told the 
Subcommittee that small businesses have huge growth potential 
in the defense contracting industry, and they should not be 
forced to simply ride the ``coat tails'' of large businesses 
just to get an opportunity to bid. Mr. Flittie described his 
experience as a prime contractor for the Department of Defense. 
Rep. Knight, who chaired the hearing, agreed with the witnesses 
that small contractors play a vital role in defense 
contracting. He said a strong defense industrial base is 
critical to both our national security and our economy and a 
strong industrial base is only strong when it comprises a 
robust and active small business component.

 FIELD HEARING IN CALIFORNIA: ``BRIDGING THE GAP--INCREASING ACCESS TO 
                 VENTURE CAPITAL FOR SMALL BUSINESSES''

    On April 5, 2016, the Subcommittee on Economic Growth, Tax, 
and Capital Access of the Committee on Small Business met in 
the City Council Chambers of Pasadena City Hall in Pasadena, CA 
for a field hearing titled ``Bridging the Gap--Increasing 
Access to Venture Capital for Small Businesses.'' The hearing 
examined the challenges faced by entrepreneurs looking to 
obtain venture capital (VC), with a particular focus on 
entrepreneurs typically underserved by the venture capital 
community.
    The witnesses for the hearing were: Ms. Jeri J. Harman, 
Managing Partner & CEO, Avante Mezzanine Partners, Los Angeles, 
CA, on behalf of the Small Business Investor Alliance; Ms. 
Renee LaBran, General Partner, Rustic Canyon/Fontis Partners, 
Senior Advisor, Idealab, Pasadena, CA; Ms. Louise J. Wannier, 
Board Member/Advisory Services, True Roses, Inc., Pasadena, CA; 
and Ms. Laura Yamanaka, President, teamCFO, Inc., Los Angeles, 
CA testifying on behalf of the National Women's Business 
Council.
    Ms. Harman's testimony first described how her company, 
Avante Mezzanine Partners, provides debt and equity for high 
quality, lower middle market businesses. She then went on to 
discuss the SBIC program and how it fills a need for capital 
for small businesses that cannot be called back on a moment's 
notice. Ms. LaBran discussed some of the issues women in VC 
face. Specifically, the number of women partners in VC fell 
from 10 percent to 6 percent between 1999 and 2013. Ms. Wannier 
echoed Ms. LaBran's testimony, saying that a ``higher 
proportion of women-founded businesses succeed than do those 
started by men, yet women are unrepresented significantly in 
the proportion of venture capital financings both in number and 
average amount invested over the lifetime of a venture.'' Ms. 
Yamanaka provided a potential remedy to the gender disparity 
reported by the previous witnesses, saying that ``venture 
capital firms with female partners are reportedly two and one 
half times more likely to invest in companies with women on the 
management team.'' Representative Knight agreed with the 
witnesses that business of all types should have a fair shot at 
getting access to capital.

   HEARING: ``KEEP IT SIMPLE: SMALL BUSINESS TAX SIMPLIFICATION AND 
                      REFORM, MAIN STREET SPEAKS''

    On April 13, 2016, the Subcommittee on Economic Growth, Tax 
and Capital Access of the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Keep It Simple: Small Business Tax Simplification and 
Reform, Main Street Speaks.'' The hearing focused on some of 
the most egregious areas of both substantive and administrative 
tax complexity from the small business perspective and provided 
a discussion of potential solutions. The morning Subcommittee 
hearing was followed by an afternoon full Committee hearing on 
the same topic with Internal Revenue Service (IRS) Commissioner 
John Koskinen.
    The Subcommittee met with a private sector panel to examine 
key tax issues as they apply to small businesses. Corporations 
and partnerships with more than 50 employees face a tax 
compliance burden of approximately $182 to $191 per employee, 
but this number skyrockets to $4,308 to $4,736 per employee for 
the smallest employers with 1-5 employees. As overall tax 
reform efforts continue to take shape, the goal of 
simplification must remain at the forefront so that small 
businesses can continue to grow, succeed, and create jobs.
    The witnesses for the hearing were: Mr. Troy K. Lewis, 
Managing Member, Lewis & Associates, CPAs, LLC, Draper, UT, on 
behalf of the American Institute of CPAs and the Mobile 
Workforce Coalition; Mr. Mel Schwarz, Partner and Director of 
Tax Legislative Affairs, Grant Thornton LLP, Washington, DC; 
Mr. Robert M. Russell, Attorney--International Tax Controversy, 
Planning and Policy, alliantgroup, Washington, DC; and Ms. 
Julie Verratti, Director of Business Development/Founder, 
Denizens Brewing, Silver Spring, MD, on behalf of the Brewers 
Association.
    Mr. Lewis explained the simplification that could be 
achieved through enactment of H.R. 2315, the Mobile Workforce 
State Income Tax Simplification Act of 2015. The bill would 
create a uniform 30-day safe harbor for workers who travel out-
of-state in the performance of their duties. During this 
period, the non-resident state would be prevented from imposing 
income tax on these workers or withholding requirements on 
their employers. Mr. Schwarz continued by discussing the 
challenges faced by small businesses trying to take advantage 
of the R&D tax credit and the domestic production activities 
deduction and the fact that many qualifying small companies do 
not claim them because of their complexity. Mr. Russell 
discussed the challenges small businesses face when attempting 
cross-border expansion. Ms. Verratti recounted her story as a 
small brewery owner, explaining how the current burdensome tax 
code takes time away from working on other aspects of the 
business.

HEARING: ``BEARING THE BURDEN: OVER-REGULATION'S IMPACT ON SMALL BANKS 
                        AND RURAL COMMUNITIES''

    On June 9, 2016, the Subcommittee on Economic Growth, Tax 
and Capital Access of the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Bearing the Burden: Over-Regulation's Impact on Small 
Banks and Rural Communities.'' Since the passage of the Dodd-
Frank Wall Street Reform and Consumer Protection Act of 2010 
(Dodd-Frank), hundreds of new regulations have been imposed on 
America's banks. Small community banks in particular have felt 
the harsh effects of regulation, with the majority seeing a 
significant rise in their compliance costs. This is especially 
a problem in rural communities where individuals might not have 
alternatives to a community bank for access to credit for home 
mortgages or small business loans. This hearing explored how 
regulations which hurt these small community banks are 
impacting the rest of the rural community.
    The witnesses for the hearing were: Mr. Shan Hanes, 
President/CEO, First National Bank of Elkhart, Elkhart, KS; Mr. 
Roger M. Beverage, President & CEO, Oklahoma Bankers 
Association, Oklahoma City, OK, on behalf of the American 
Bankers Association; and Mr. Marcus Stanley, Policy Director, 
Americans for Financial Reform, Washington, DC.
    In his testimony, Mr. Hanes discussed how unfair 
competition and burdensome regulations have adversely affected 
community banks in rural areas. He testified that regulatory 
costs were diverting resources away from helping customers and 
towards compliance costs. Additionally, he noted that 
regulations were transforming lending decisions away from 
questions of credit (could the customer afford the loan) and 
were instead questions of compliance (was the loan worth the 
increased compliance costs). Mr. Beverage was concerned that 
recent regulations have increased the rate at which community 
banks are forced to merge. He asked Congress to help the credit 
market by eliminating the practice of creating one-size-fits-
all regulations, improving access to home loans, and removing 
rules that impede a bank's ability to serve customers. He 
stated that Dodd-Frank and other regulations have tried to 
exempt small banks from regulations, but nevertheless, there 
has been a trickle-down burden and the community banks are 
feeling its effects. Mr. Stanley said he believes the effect of 
Dodd-Frank on community banks has been very limited, and that 
the rise in community bank consolidation has resulted from 
changes in the economy, deregulation in the 1990s, and the 
benefits of economies of scale.

 HEARING: ``AUDITS AND ATTITUDES: IS THE IRS HELPING OR HURTING SMALL 
                             BUSINESSES?''

    On June 22, 2016, the Small Business Subcommittee on 
Economic Growth, Tax and Capital Access of the Committee on 
Small Business met in Room 2360 of the Rayburn House Office 
Building for a hearing titled ``Audits and Attitudes: Is the 
IRS Helping or Hurting Small Business?'' The hearing examined 
how the Internal Revenue Service (IRS) is interacting with the 
small business community.
    The witnesses for the hearing were: Mr. Pete Sepp, 
President, National Taxpayers Union, Washington, DC; Mr. Lee 
Davenport, Member, Electronic Tax Administration Advisory 
Committee (ETAAC), Washington, DC; Mr. Roger Harris, President 
& COO, Padgett Business Services, Athens, GA; and Ms. Emily 
Peterson-Cassin, Project Coordinator, Bright Lines, Washington, 
DC, on behalf of Public Citizen.
    Mr. Sepp testified that the relationship between the IRS 
and small businesses is broken. He cited a recent Gallup poll 
in which an estimated 62 percent of respondents described the 
IRS has having ``more power than it needs to do its job.'' Mr. 
Sepp attributed this statistic to the feelings of fear and 
uncertainty that potential IRS audits evoke within the small 
business community, as well as to documented intimidation 
tactics deployed by the agency. Mr. Sepp recommended correcting 
this power imbalance by embracing audit reforms such as those 
included in S. 2809 and implementing a Small Business Taxpayer 
Bill of Rights.
    Mr. Davenport focused on the IRS' decreased customer 
service to taxpayers and overall lack of transparency within 
the agency. He advocated that the agency accelerate its digital 
taxpayer service strategy. He also urged Congress and the IRS 
to move to a system that verifies taxpayer identities and tax 
return information before accepting a return.
    Mr. Harris discussed IRS audit procedures for small 
businesses, focusing particularly on the correspondence audit. 
His testimony highlighted a number of problems with the 
process, including time lags, no IRS point of contact, and the 
inability of the IRS to match up information. He recommended 
fast-tracking electronic communications to streamline the 
system but warned that practitioner access to taxpayer records 
must be addressed at the same time to effectively benefit from 
such improvements.
    Ms. Peterson-Cassin testified that the Regulatory 
Flexibility Act designed to help small businesses in the 
rulemaking process actually delays the rulemaking process and 
benefits larger businesses.

HEARING: ``READY FOR LIFTOFF: THE IMPORTANCE OF SMALL BUSINESSES IN THE 
                          NASA SUPPLY CHAIN''

    On July 12, 2016, the Subcommittee on Agriculture, Energy 
and Trade of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled 
``Ready for Liftoff: The Importance of Small Businesses in the 
NASA Supply Chain.'' Since the space shuttle's retirement in 
2011, some downstream engine and parts suppliers have struggled 
to survive in the gap period to the next manned-rocket system. 
The hearing focused on their response to these challenges, 
their impact on the local economies, the importance of small 
firms to the supply chain, and the significance of small 
manufacturers helping lead the way in space exploration.
    The witnesses for the hearing were: Mr. Chris Carberry, CEO 
and Co-Founder, Explore Mars, Inc., Beverly, MA; George Davis, 
Ph.D., President and Founder, Emergent Space Technologies, 
Greenbelt, MD; Ms. Carol Craig, President and CEO, Craig 
Technologies, Cape Canaveral, FL; and Mr. Stephen Gorevan, 
Chairman, Honeybee Robotics, Ltd., Brooklyn, NY.
    Mr. Carberry highlighted the National Aeronautics and Space 
Administration's (NASA) support of small businesses, stating 
that small businesses received about $5 billion worth of 
contracts during Fiscal Year 2015, including about $2.5 billion 
awarded directly to small businesses as prime contracts. While 
many may think that larger businesses will be the only ones to 
help the United States achieve manned exploration of Mars and 
deep space in the coming decades, Mr. Carberry noted that small 
businesses will play an essential role in the supply chain of 
future products used for Mars and other missions. Because of 
the important role small businesses play for NASA, as well as 
the benefits associated with future space missions, he 
requested that Congress continue to adequately fund NASA. Dr. 
Davis reiterated small businesses' importance in the NASA 
supply chain. In his recommendations to the federal government, 
Davis advocated for the expanded use of small business set-
aside contracts under the 541330 and 541511 North American 
Industry Classification System codes, the use of the size 
standard for emerging small businesses, and ensuring the Small 
Business Innovation Research and Small Business Technology 
Transfer (SBIR and STTR) programs have long term stability.
    Ms. Craig reviewed the challenges of being a supplier to 
NASA and inadequate funding for small businesses. She was able 
to grow her business by $25 million in six years without using 
outside capital; however, she believes that financial 
regulation has created a credit gap for small businesses 
looking for capital. Mr. Gorevan highlighted the importance of 
the SBIR program for small businesses that work with NASA and 
how to make it better. He urged Congress increase the share of 
funding that federal agencies allocate to SBIR, especially 
between Phases II and III.

   HEARING: ``STRUGGLING TO GROW: ASSESSING THE CHALLENGES FOR SMALL 
                     BUSINESSES IN RURAL AMERICA''

    On September 8, 2016, the Subcommittee on Economic Growth, 
Tax, and Capital Access of the Committee on Small Business met 
for a hearing titled ``Struggling To Grow: Assessing the 
Challenges for Small Businesses in Rural America.'' The hearing 
examined hurdles facing rural small businesses and startups 
following the Great Recession.
    The witnesses for the hearing were: Mr. John Dearie, Co-
Author, ``Where the Jobs Are: Entrepreneurship and the Soul of 
the American Economy,'' Washington, DC; Mr. Robert Boyd, County 
Commissioner, Riley County, Manhattan, KS, on behalf of the 
National Association of Counties; Mr. Hugh Middleton, Co-
Founder, Kopis Mobile LLC, Flowood, MS; and Ms. Linsley 
Kinkade, Deputy Director, U.S. Programs, Winrock International, 
Little Rock, AR.
    Mr. Dearie testified that new business development is the 
true source of economic growth in this country. However, in 
recent years, startup rates have plummeted. Through his various 
roundtables across the country, Mr. Dearie heard that business 
owners' biggest complaints were the tax code, the over 
burdensome regulatory environment, and uncertainty in 
Washington. Mr. Boyd's testimony both explained the economic 
conditions in Manhattan, Kansas and highlighted findings in the 
National Association of Counties ``County Economies 2015'' 
report. Mr. Boyd shared that when the recession began in 2008, 
Kansas' Gross Domestic Product (GDP) fell farther than the 
average state, and the GDP growth rate in Kansas has lagged 
behind the national average ever since. This slow growth 
ultimately makes his job as a County Commissioner more 
difficult, as property values account for 56 percent of total 
revenue for Kansas counties. Ensuring local economic growth not 
only helps businesses in the local community, but also helps 
county governments maintain the proper amount of funding to 
make necessary infrastructure investments and run a balanced 
budget. Mr. Middleton described his company, Kopis Mobile, and 
how it is unique as a technology defense company in rural 
Mississippi. Mr. Middleton testified that Kopis Mobile faces a 
large hurdle because the rate of regulation exceeds advances, 
due to technology and automation. Regulatory hurdles in regards 
to doing business with the Department of Defense make it even 
more challenging for a company as small as Kopis Mobile to 
succeed.

HEARING: ``THE CUMULATIVE BURDEN OF PRESIDENT OBAMA'S EXECUTIVE ORDERS 
                         ON SMALL CONTRACTORS''

    On September 13, 2016, the Subcommittees on Investigations, 
Oversight and Regulations and Contracting and Workforce of the 
Committee on Small Business met in Room 2360 of the Rayburn 
House Office Building for a hearing titled ``The Cumulative 
Burden of President Obama's Executive Orders.'' Since 2009, 
President Obama has signed 15 Executive Orders and Presidential 
Memoranda targeting contractors, including small businesses. 
This hearing examined how these actions have affected small 
government contractors.
    The witnesses for the hearing were: Mr. James P. Hoffman, 
P.E., President, Summer Consultants, Inc., McLean, VA, on 
behalf of the American Council of Engineering Companies; Ms. 
Donna S. Huneycutt, Co-Owner and Chief Operating Officer, WWC, 
LLC, Tampa, FL, on behalf of the National Defense Industrial 
Association; Mr. Jimmy Christianson, Regulatory Counsel, 
Associated General Contractors of America, Arlington, VA; and 
David Madland, Ph.D., Senior Fellow & Senior Advisor to the 
American Worker Project, Center for American Progress, 
Washington, DC.
    Mr. Hoffman focused his testimony on the negative effects 
of the Department of Labor Paid Sick Leave Rule and Fair Pay 
and Safe Workplaces Rule (also referred to as the Blacklisting 
Rule). The Paid Sick Leave Rule would require all engineering 
firms working for a federal agency to provide employees with 56 
hours of annual sick leave. Mr. Hoffman said that this rule 
would reduce the flexibility of firms to design benefit 
packages to attract and keep employees. The Blacklisting Rule 
requires the prime contractor to disclose labor violations for 
awards greater than $500,000 for ``goods and services including 
construction.'' The American Council of Engineering Companies' 
(Council) concern with the rule is that it would damage the 
relationship between prime and subcontractors. The Council 
believes the reporting requirements are unnecessarily 
burdensome to prime contractors. Ms. Huneycutt said the 
Blacklisting Rule punishes the good actors, which make up the 
overwhelming majority of businesses in the federal procurement 
marketplace. She also said that the Small Business 
Administration's Office of Advocacy found the Paid Sick Leave 
Rule and the Minimum Wage for Federal Contractors Rule 
underestimated the compliance costs and the entities affected. 
She also recommended that the Administration focus on enforcing 
existing laws. Mr. Christianson also criticized the Paid Sick 
Leave and Blacklisting Rules. He voiced concern about the 
Executive Order for the Use of Project Labor Agreements for 
Federal Construction Projects, the Department of Labor Overtime 
Rule, and the Presidential Memorandum on Advancing Pay Equality 
through Compensation Data Collection. These regulations have 
become so burdensome that many small business contractors have 
said they are strongly considering leaving the federal 
procurement market.

 HEARING: ``OPPORTUNITY RISING: THE FAA'S NEW REGULATORY FRAMEWORK FOR 
                     COMMERCIAL DRONE OPERATIONS''

    On September 27, 2016, the Subcommittee on Investigations, 
Oversight and Regulations of the Committee on Small Business 
met in Room 2360 of the Rayburn House Office Building for a 
hearing titled ``Opportunity Rising: the FAA's New Regulatory 
Framework for Commercial Drone Operations.'' This hearing 
examined the most recent steps taken by the Federal Aviation 
Administration (FAA) to integrate unmanned aircraft systems, 
commonly referred to UAS or drones, into the national airspace 
system. In particular, the hearing focused on the final rule 
issued by the FAA that permits routine civil operations of 
small unmanned aircraft systems, those weighing less than 55 
pounds.
    The witnesses for the hearing were: Mr. Gabriel Dobbs, Vice 
President, Business Development and Policy, Kespry Inc., Menlo 
Park, CA, on behalf of the Small UAV Coalition; Mr. Brian 
Wynne, President & CEO, Association for Unmanned Vehicle 
Systems International, Arlington, VA; Mr. Jonathan H. Daniels, 
President, Praxis Aerospace Concepts International, Inc., 
Henderson, NV; and Ms. Lisa Ellman, Partner, Hogan Lovells US 
LLP, Washington, DC.
    Mr. Dobbs stated that the final rule, colloquially referred 
to as Part 107, is a huge improvement over the Section 333 
case-by-case process by which the FAA had been approving 
commercial drone operations. However, he also emphasized that 
to create a comprehensive regulatory framework, the FAA must: 
improve the Part 107 waiver process; craft regulations to allow 
routine operations beyond the visual line of sight and over 
people; create a micro UAS classification for unmanned aircraft 
weighing up to 4.4 pounds; and improve testing and training. 
Mr. Wynne discussed the Association for Unmanned Vehicle 
Systems International (AUVSI) analysis of Section 333 
exemptions. AUVSI found that the vast majority of businesses 
that received exemptions were small businesses. Over 90 percent 
had less than $1 million in annual revenue and had fewer than 
10 employees. Mr. Daniels described the UAS operations 
conducted by the serve-disabled veteran-owned small business he 
co-founded. He voiced his support of the process the FAA used 
to begin integrating UAS into the national airspace system. 
However, Mr. Daniels stated that the final rule should have 
allowed pilots with military experience operating UAS to 
dispense with certain aspects of the testing requirements to 
receive a remote pilot certificate with a small UAS rating. Ms. 
Ellman stated that Part 107 is a major step forward but 
believes that challenges remain, including: enhancing 
government-industry collaboration, supporting a whole-of-
government approach to integration; and ensuring industry 
diversity.

                                 PART C

                 Waste, Fraud, Abuse and Mismanagement

    Of the hearings delineated above, the following were 
devoted specifically to an examination of programs within the 
Committee's jurisdiction with a focus on potential 
mismanagement, waste, fraud and abuse.

                 HEARINGS ON SBA MANAGEMENT AND BUDGET

    During the February 25, 2015 full Committee hearing on the 
Small Business Administration's (SBA) Fiscal Year (FY) 2016 
budget, at which SBA Administrator Maria Contreras-Sweet 
testified, the programs under her authority were discussed in 
detail. Members expressed concern regarding the implementation 
of SBA's information technology resources, as well as 
entrepreneurial development programs that are unauthorized by 
Congress and appear to duplicate programs in the Small Business 
Act. Committee Members also questioned the Administrator about 
the modernization of the SBA's loan management accounting 
system, which is still behind schedule. These concerns were 
also fully detailed in the Committee's views and estimates on 
the FY 2016 SBA budget, which were adopted by the Committee by 
voice vote on February 12, 2015.
    Also in 2015, numerous SBA personnel, industry 
representatives and small business owners were questioned about 
the operation of specific SBA programs. Hearings were held on 
SBA's federal contracting programs on February 12, 2015, March 
17, 2015, March 19, 2015, October 27, 2015, November 18, 2015 
and December 9, 2015; SBA's capital access programs on May 19, 
2015; SBA's size standards on June 4, 2015 and November 19, 
2015; and SBA's disaster loan programs on July 8, 2015.
    The Committee began 2016 with six weeks of oversight 
hearings on the management of a number of SBA programs. The 
first two full Committee hearings examined the Government 
Accountability Office's (GAO) report on overall mismanagement 
of the SBA, which was released on October 28, 2015. The report 
found ongoing SBA deficiencies spanning the entire breadth of 
the agency, from information technology and security to staff 
management to disaster response to fraud in lending and 
contracting programs. On January 6, 2016, Committee Members 
questioned GAO officials about their report, and on January 7, 
2016, Committee Members questioned SBA Administrator Maria 
Contreras-Sweet about SBA's failure to implement GAO's 
recommendations, including 30 recommendations related to IT 
security alone. At the January 7, 2016 hearing with SBA 
Administrator Contreras-Sweet, Chairman Chabot requested 
monthly updates from SBA on its progress in implementing the 
recommended changes.
    Hearings were also held on SBA's management of its offices, 
and the programs for which they are responsible, as follows: 
Office of International Trade on January 11, 2016; Offices of 
Capital Access and Credit Risk Management on January 12, 2016; 
Office of Investment and Innovation on January 12, 2016; 
Offices of Entrepreneurial Development and Veterans Business 
Development on February 2, 2016; and Office of Government 
Contracts and Business Development on February 3, 2016. On 
February 10, 2016, a hearing examined the SBA Office of 
Advocacy and Office of the Ombudsman which both assist small 
businesses on regulatory matters. An additional hearing was 
held on March 16, 2016 with SBA's Inspector General to explore 
her perspective on SBA's management. Finally, a hearing on the 
management of the HUBZone program was held by the Committee on 
September 7, 2016. A full description of these hearings can be 
found in Part B, supra.

                    HEARINGS ON FEDERAL PROCUREMENT

    During the first session of the 114th Congress, the 
Committee and its Subcommittees held a total of 11 hearings on 
federal procurement issues. In the second session of the 114th 
Congress, the Committee and its Subcommittees held a total of 5 
hearings on federal procurement issues. The issues covered 
topics such as enforcement of procurement provisions of the 
Small Business Act, clarification of contracting employees' 
duties and enforcement of reporting requirements, the 
effectiveness of the Small Business Administration's (SBA) 
mentor-protege program, fraud and manipulation in small 
business contracting and goaling at the Department of Veterans 
Affairs (VA), and continuing challenges for defense 
contractors. For example, on June 4, 2015, the Subcommittee on 
Contracting and Workforce held a hearing on the SBA's failure 
to implement Congressional direction on size standards, and on 
November 19, 2015 on improving size standards for farmers and 
ranchers. On June 23, 2015, the Subcommittee on Investigations, 
Oversight and Regulations held a joint hearing with the 
Committee on Veterans' Affairs Subcommittee on Oversight and 
Investigations on fraud and manipulation in VA small business 
goals. The Subcommittee on Contracting and Workforce held a 
joint hearing with the Committee on Veterans Affairs' 
Subcommittee on Oversight and Investigations on November 4, 
2015 to examined continued challenges in the VA's Vets First 
verification process. On February 23, 2016, the Subcommittee on 
Contracting and Workforce held a hearing on two audits of 
contracting activities the Department of Defense's Inspector 
General had recently completed of the Regional Contracting 
Office of the National Capital Region and the Marine Corps 
System Command for compliance with the Small Business Act. In 
addition, the Committee probed the management and operation 
SBA's HUBZone program in a hearing on September 7, 2016.
    The Committee utilized information gleaned from the 
hearings to develop several comprehensive procurement reform 
bills. The Committee also held hearings on the Small Business 
Innovation Research and Small Business Technology Transfer 
programs on March 2, 2016 and March 8, 2016. Those hearings led 
to H.R. 4783, the Commercializing on Small Business Innovation 
Act of 2016, legislation to reauthorize and improve the SBIR 
and STTR programs. H.R. 4783 was reported as amended by the 
Committee on March 23, 2016 and is awaiting further action.

             HEARINGS ON SBA FINANCIAL ASSISTANCE PROGRAMS

    The Subcommittee on Economic Growth, Tax and Capital Access 
held an oversight hearing on May 19, 2015 on SBA's capital 
access programs and on September 17, 2015, the Subcommittee 
held a hearing on the impact of Dodd-Frank law on small 
lenders. On July 8, 2015, the full Committee examined SBA's 
disaster loan program. In addition, the Committee held a full 
Committee hearing on overall SBA mismanagement at which the 
Administrator testified on January 6, 2016 and a full Committee 
hearing on January 12, 2016 to probe the SBA's Offices of 
Capital Access and Credit Risk Management. On April 5, 2016, 
the Subcommittee on Contracting and Workforce held a field 
hearing in California focused on access to venture capital for 
small firms. Summaries of these hearings can be found in Parts 
A and B, supra.

          HEARINGS ON SBA ENTREPRENEURIAL DEVELOPMENT PROGRAMS

    As previously noted, the SBA's entrepreneurial development 
programs were examined as part of the Committee's February 25, 
2015 full Committee hearing on the Small Business 
Administration's (SBA) Fiscal Year (FY) 2016 budget, at which 
SBA Administrator Maria Contreras-Sweet testified. On February 
2, 2016, the Subcommittee on Economic Growth, Tax and Capital 
Access held a hearing that focused on the primary offices 
responsible for entrepreneurial development programs at the 
SBA, the Offices of Entrepreneurial Development (OED) and 
Veterans Business Development (OVBD). The latter hearing 
examined whether improvements within the OED and the OVBD are 
necessary to ensure that the SBA is effective in helping small 
businesses without wasting federal funds through the operation 
of duplicative programs. A summary of the February 2, 2016 
hearing can be found in Part B, supra.

                                 PART D

                          OVERSIGHT ACTIVITIES

                 OVERSIGHT PLAN FOR THE 114TH CONGRESS

    Clause 2(d) of Rule X of the Rules of the House of 
Representatives for the 114th Congress requires that each 
standing committee, in the first session of Congress, adopt an 
oversight plan for the two-year period of the Congress and 
submit the plan to the Committee on Oversight and Government 
Reform and the Committee on House Administration.
    Subpart A contains the Oversight Plan of the Committee on 
Small Business for the One Hundred Fourteenth Congress, which 
the Committee considered and adopted on February 12, 2015. 
Subpart B contains a summary of the actions taken to implement 
that plan.

                               SUBPART A

 Oversight Plan of the Committee on Small Business for the One Hundred 
                          Fourteenth Congress

                              ----------                              


     February 12, 2015, Approved by the Committee on Small Business

                              ----------                              


  Mr. Chabot, from the Committee on Small Business, submitted to the 
Committee on Oversight and Government Reform and the Committee on House 
                      Administration the following

                                 REPORT

    Rule X, cl. 2(d)(1) of the Rules of the House requires each 
standing Committee to adopt an oversight plan for the two-year 
period of the Congress and to submit the plan to the Committees 
on Government Reform and House Administration not later than 
February 15 of the first session of the Congress. Under Rule X, 
the Committee has oversight authority to investigate and 
examine any matter affecting small business. This Report 
reflects that broad oversight jurisdiction.
    Pursuant to Rule X, cl. 2(d)(1)(F), this oversight plan 
also includes proposals to cut or eliminate programs that are 
inefficient, duplicative, outdated, or more appropriately 
administered by State or local governments.
Oversight of Federal Capital Access Programs
    The Committee will conduct hearings and investigations into 
Small Business Administration (SBA) and other federal agencies 
that provide capital to America's entrepreneurs that may 
include any or all of the following, as well as matters brought 
to the attention of the Committee subsequent to the filing of 
this Report:
     Effectiveness of the capital access programs to 
generate jobs in the fastest growing small businesses.
     Whether lenders are meeting their goals to lend to 
small businesses and create jobs.
     Risk to the taxpayers of the capital access 
programs and if those risks are not reasonable, then 
elimination of those programs.
     Adequacy of SBA oversight of its lending partners 
to ensure that federal taxpayers are properly protected.
     Capabilities of the SBA information technology to 
manage the loan portfolio.
     Whether SBA rules, regulations and guidance result 
in transparent and reasoned decisionmaking with respect to 
capital access programs.
     Assessment of credit-scoring algorithms as a 
replacement for individual credit assessment by SBA and its 
lending partners.
     The exercise of discretion by SBA to create pilot 
programs and the risk they pose to the taxpayer and whether 
such authority should be curtailed or eliminated.
     Whether SBA disaster loan program and its 
oversight ensures that small businesses are able to revive and 
rebuild communities without unduly placing the federal taxpayer 
at risk.
     Efficacy and duplication of federal capital access 
programs offered by the Department of Agriculture to small 
businesses in rural areas.
     Utilization by small businesses of export capital 
programs at the Export-Import Bank and the Overseas Private 
Investment Corporation.
     Continued examination of the Small Business 
Lending Fund and State Small Business Credit Initiative 
established by Pub. L. No. 111-240, the Small Business Jobs Act 
of 2010, in creating jobs and providing capital to small 
businesses.
     Impact of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, Pub. L. No. 111-203, on small business 
access to capital.
     Implementation of crowdfunding and other 
provisions of the Jumpstart Our Business Startups Act, Pub. L. 
No. 112-106.
    In performing oversight, the Committee will focus on 
particularly risky aspects of financial assistance programs 
including, but not limited to, commercial real estate 
refinancing, premier certified lenders, participating security 
small business investment companies, small business lending 
companies, express lenders, and loan programs utilizing 
simplified lending applications.
Oversight of SBA and Other Federal Entrepreneurial Development Programs
    The Committee will conduct hearings and investigations into 
the SBA programs that provide training and advice to small 
businesses that may include any or all of the following, as 
well as matters brought to the attention of the Committee 
subsequent to the filing of this Report:
     Examining effectiveness of SBA entrepreneurial 
development programs in creating jobs at startups and 
traditional firms.
     Determining whether certain programs should be 
eliminated as a result of their ineffectiveness or duplication 
of programs provided by other agencies or by the private 
sector.
     Suggesting methods for enhancing coordination 
among federal agencies in providing assistance to 
entrepreneurs, including, but not limited to, businesses 
located in rural areas and those seeking to provide goods and 
services in the federal procurement marketplace.
     Enhancing the efficacy and utilization of the 
Manufacturing Extension Partnership at the Department of 
Commerce, including developments in renewable energy.
     Recommending improvements in assistance to small 
businesses in rural areas, including those involved in 
agriculture, forestry, and energy production.
Oversight of Federal Government Contracting Matters
    The Committee will conduct hearings and investigations into 
the federal procurement system that may include any or all of 
the following, as well as matters brought to the attention of 
the Committee subsequent to the filing of this Report:
     Whether fraud or other problems exist in the 
federal government contracting programs overseen by the SBA 
including the 8(a), HUBZone, service-disabled veteran, women-
owned contracting, and Small Business Innovation Research 
programs.
     Effectiveness of SBA contracting programs to 
increase participation by small businesses in federal 
procurement.
     Effectiveness of federal agency protections 
against contract bundling and consolidation.
     The accuracy and utility of SBA size standards and 
federal procurement databases.
     Operation and effectiveness of federal agency 
assistance provided to small businesses interested in federal 
procurement, including that provided by the SBA, Offices of 
Small and Disadvantaged Business Utilization and Procurement 
Technical Assistance Centers.
     Development of federal acquisition policies and 
whether small businesses have sufficiently effective voice in 
development of such policies.
     Cost-effectiveness of outsourcing government work 
to private enterprise rather than expanding the government to 
do provide the good or service internally (i.e., government 
insourcing).
     Implementation and efficacy of changes made in 
small business federal procurement programs arising from the 
enactment of the National Defense Authorization Acts for FYs 
2012-2015.
     Examination of the Small Business Innovation 
Research Program as modified by the National Defense 
Authorization Act for FY 2012, Pub. L. No. 112-81, including, 
but not limited to, increased efforts at commercializing 
federally-funded technology.
    In performing oversight, the Committee will focus its 
efforts on uncovering abuse and misuse of the small business 
designation to obtain federal government contracts.

Oversight of SBA Management

    The Committee will conduct the hearings and investigations 
into the management of the SBA that may include any or all of 
the following, as well as matters brought to the attention of 
the Committee subsequent to the filing of this Report:
     The appropriate mission of the SBA.
     Whether agency employees in the field are 
empowered to assist small businesses.
     Duplication of offices and missions at SBA 
headquarters.
     Effectiveness of personnel management to ensure 
that employees are rewarded for assisting small businesses.
     Capabilities of SBA employees to provide proper 
assistance to small business owners.
     Agency personnel capabilities to properly manage 
loan defaults to maximize recovery of collateral.
     Whether SBA improperly utilizes statutory 
authority to create untested initiatives and the procedures by 
which the agency develops such programs.
    In carrying out this oversight, the Committee will focus 
particularly on streamlining and reorganizing of the agency's 
operations to provide maximum assistance to small business 
owners. Offices that primarily provide assistance or advice to 
headquarters staff that do not promote the interests of small 
businesses or protect the federal government as a guarantor of 
loans will be recommended for cuts or elimination. For some 
potential offices that the Committee will examine, refer to the 
section titled ``Reductions in Programs and Spending.''

Oversight of Federal Regulatory and Paperwork Burdens

    The Committee will conduct hearings and investigations into 
unnecessary, burdensome, and duplicative federal rules, 
reporting and recordkeeping requirements affecting small 
businesses that may include any or all of the following, as 
well as matters brought to the attention of the Committee 
subsequent to the filing of this Report:
     Centers for Medicare and Medicaid Services.
     Consumer Financial Protection Bureau.
     Consumer Safety Products Commission.
     Department of Agriculture.
     Department of Energy, particularly the Office of 
Energy Efficiency and Renewable Energy.
     Department of Interior, particularly the Bureau of 
Land Management and Minerals Management Service.
     Department of Labor, particularly the Occupation 
Safety and Health Administration.
     Department of Homeland Security, particularly the 
Transportation Security Administration.
     Department of Transportation, particularly the 
Federal Aviation Administration and Federal Motor Carrier 
Safety Administration.
     Environmental Protection Agency.
     Federal Communications Commission.
     Federal Financial Institutions Examination Council 
and its constituent agencies.
     Food and Drug Administration.
     Office of Federal Procurement Policy.
     Securities and Exchange Commission.
    The Committee will identify specific rules and regulations 
already issued or at the proposed rule stage to assess the 
impact on small businesses. The Committee will pay close 
attention to the effect that regulations have on the 
implementation of advanced technologies including, but not 
limited to, the deployment of broadband communications (either 
by wireline or wireless services) throughout the United States. 
Oversight of the regulatory process also will, to the extent 
relevant, examine the work of the Office of Information and 
Regulatory Affairs at the Office of Management and Budget. 
Special attention will be paid to the work performed by the 
Chief Counsel for Advocacy at the United States Small Business 
Administration to ensure that Office is fulfilling its mission 
to advocate vigorously on behalf of America's small business 
owners in regulatory matters at federal agencies. Finally, this 
oversight will entail an examination of compliance by federal 
agencies with amendments to Executive Order 12,866 and 
memoranda on regulatory flexibility and regulatory compliance 
issued by the President on January 18, 2011 and still in effect 
as of the approval of this Oversight Plan.

Oversight of Federal Tax Policy

    The Committee will conduct hearings and investigations into 
the federal tax code, its impact on small business, and 
Internal Revenue Service's (IRS) collection of taxes that may 
include any or all of the following, as well as matters brought 
to the attention of the Committee subsequent to the filing of 
this Report:
     Identification of tax code provisions that hinder 
the ability of small businesses to create jobs and 
recommendations for modifying those provisions to boost small 
business job growth.
     Examination of the structure of the tax code in 
order to simplify compliance for small businesses.
     Assessment of the recordkeeping and reporting 
requirements associated with tax compliance and suggestions for 
reducing such burdens on small businesses.
     Evaluation of the estate tax provisions to 
determine whether they inhibit the ability of successive 
generations to maintain successful job creating enterprises.
     Efficiencies at the IRS that improve the 
interaction between the government and small business owners.
     Inefficiencies at the IRS that force small 
businesses to divert capital from job growth to tax compliance.

Oversight of Health Care Policy

    The Committee will conduct hearings and investigations into 
federal health care policy (such as Medicare and Medicaid) and 
the continued implementation of the Patient Protection and 
Affordable Care Act that may include any or all of the 
following, as well as matters brought to the attention of the 
Committee subsequent to the filing of this Report:
     The cost of the Patient Protection and Affordable 
Care Act to small businesses, including the self-employed.
     The impact of the Patient Protection and 
Affordable Care Act, Medicare and Medicaid on the ability of 
physicians, pharmacists, and allied health care providers to 
offer the best care possible to patients.
     The impact of state tort and insurance laws on the 
cost of medical care.
     Examination of increases in efficiencies that will 
improve the provision of health care while reducing costs to 
small businesses that offer their workers health insurance.

Oversight of Energy Policy

    The Committee will conduct hearings and investigations into 
energy policy to reduce the cost of energy and increase energy 
independence that may include any or all of the following, as 
well as matters brought to the attention of the Committee 
subsequent to the filing of this Report:
     Innovations developed by small businesses that 
create greater energy independence.
     Federal regulatory policies that increase 
dependence on foreign sources of energy.
     Policies needed to incentivize production of 
energy in the United States.
     Examination of commercialization of research in 
renewable energy.
     Federal regulations or policies that increase 
energy costs for small businesses.
    The primary thrust of the Committee's efforts will focus on 
efforts to use the innovation of America's entrepreneurs to 
fuel the drive for greater energy independence, including the 
development of renewable energy products.

Oversight of Trade and Intellectual Property Policy

    The Committee will conduct hearings and investigations into 
international trade and intellectual property policies of 
America and its trading partners that may include any or all of 
the following, as well as matters brought to the attention of 
the Committee subsequent to the filing of this Report:
     Impact of free trade agreements to increase 
exports by American small businesses.
     Whether the federal government is doing enough to 
protect the intellectual property rights of small businesses by 
foreign competitors.
     The impact of federal intellectual property 
policies, particularly patents and copyrights, to protect the 
innovations of American entrepreneurs.
     Efforts to increase exports by small businesses.
     Whether the United States Trade Representative and 
Department of Commerce sufficiently protect the interests of 
small businesses in the negotiation of free trade agreements.
     Whether the United States Trade Representative 
takes positions at the World Trade Organization that 
sufficiently promote the interests of American small 
businesses.
    The focus of oversight will emphasize the best mechanisms 
to promote and protect advanced technology innovations of small 
businesses.

Reductions in Programs and Spending

    In addition to the programs and policies already cited, the 
Committee will examine any and all offices and programs that 
fall within the Committee's legislative jurisdiction to find 
areas that could lead to reduction in the federal deficit. Some 
programs and offices may include:
     State Small Business Credit Initiative operated by 
Department of Treasury.
     Express Loan Program overseen by SBA.
     Emerging Leaders Initiative started by SBA.
     Clusters Program initiated by the SBA.
     Innovation and Impact Fund Pilot Programs operated 
by the SBA.
     SBA Office of Policy.
     SBA Regional Administrators.
     Office of Advocacy Regional Advocates.
     SBA Deputy District Directors.
     SBA Office of International Trade.
     SBA Office of Native American Affairs.
    In particular, the Committee will assess whether 
reorganization and reassignment of employees to more critical 
functions at the SBA, such as positions in the Office of 
Government Contracting and Business Development will provide a 
more effective agency at assisting small businesses generate 
growth.

                               SUBPART B


Implementation of the Oversight Plan of the Committee on Small Business 
                for the One Hundred Fourteenth Congress

    The Committee began 2016 with six weeks of comprehensive 
oversight hearings on the Small Business Administration (SBA or 
Agency) and its programs. The Committee focused on small 
business' access to capital; opportunities for federal 
contracting; assistance with trade and exporting; 
entrepreneurial development; investment and innovation 
programs; and the Offices of Advocacy and the National 
Ombudsman. In addition, in January, the Committee held two wide 
ranging hearings on an expansive Government Accountability 
Office report on SBA mismanagement that was requested by the 
Committee.

Sec. A. Oversight of Federal Capital Access Programs

    Despite an improving economy, small businesses still 
experience great difficulty obtaining needed capital to finance 
their operations and expansions. The SBA's programs provide 
credit-worthy entrepreneurs with needed capital they would be 
unable to obtain through the customary credit markets.
    In preparation of the Committee's budget views and 
estimates, the Committee analyzed SBA's programs dedicated to 
providing access to small businesses. The views and estimates 
adopted on February 12, 2015 and February 4, 2016 enabled the 
Committee to outline its concerns with, and proposals for, 
improving the programs devoted to small business financing, 
including the 7(a) Loan Program, the Certified Development 
Company Program, the Microloan Program, the Small Business 
Investment Company Program, the Surety Bond Program and the 
Disaster Loan Program.
    The Committee and its subcommittees held 16 hearings on 
capital access issues that were described in Parts B and C, 
supra. For purposes of brevity, those descriptions will not be 
repeated here.
    In addition, the Committee has continued to closely follow 
the implementation of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, Pub. L. No. 111-203, and its effect on 
small businesses and their access to capital. In October of 
2015, Chairman Chabot requested that the Government 
Accountability Office (GAO) evaluate the impact of regulation 
on the viability of community banks and credit unions and their 
ability to meet the needs of small businesses. Specifically, 
the Chairman asked GAO to assess the effect of regulatory 
burdens on community banks and credit unions on their small 
business lending activity and the ability of small firms to 
access capital post-crisis. Chairman Chabot also requested an 
examination of the effect of regulatory costs on the formation 
of new banks and credit unions and merger activity. In 
addition, GAO was asked to provide a comprehensive review of 
major safety and soundness, consumer protection, and anti-money 
laundering regulations facing community banks and credit 
unions, as well as any federal efforts to provide regulatory 
relief for these entities.
    Additionally, the Committee held hearings on the 
effectiveness of the SBA's disaster loan program, and 
considered whether small firms are able to rebuild communities 
using SBA programs without risking taxpayer dollars.
    In January of 2016, the Committee held a hearing to closely 
examine the SBA's Office of Capital Access and Office of Credit 
Risk Management to ensure sufficient lender oversight and small 
business access to capital. In light of the Government 
Accountability Office's report on SBA's mismanagement, the 
Committee stressed that the SBA offices must work together to 
establish clear guidance and ensure the integrity of the SBA's 
loan programs.
    In March of 2015, Chairman Chabot filed a comment letter in 
response to the SBA's request for comment on a variety of 
issues related to SBA's procedures for determining whether a 
franchisee is affiliated with its franchisor and potentially 
ineligible for financial assistance through programs provided 
by the SBA. The Committee supports the Agency's efforts to 
garner information on the effects of various terms in franchise 
agreements that may or may not inculcate the independence of 
the franchisee from the franchisor. However, the SBA should 
have taken the opportunity to commence rulemaking so that 
appropriate changes can be made in the agency's regulations 
that govern determinations of affiliation for purposes of the 
franchise business model. It is only through changes in the 
regulations that SBA can ensure that rational decisionmaking 
can occur in the process of reviewing franchise agreements and 
making the corollary decision as to whether the franchisee is a 
small business concern eligible for assistance from the SBA. 
Absent such changes, the SBA will continue a nearly 30-year 
history of arbitrary and capricious decisionmaking of the 
Franchise Rule.
    The Committee has heard reports that SBA has been 
incorrectly interpreting the application of the Anti-Deficiency 
Act, which prohibits federal employees from making or 
authorizing an expenditure from any appropriation in excess of 
the appropriation unless authorized by law. On March 25, 2015, 
Chairman Chabot sent a letter to SBA Administrator Maria 
Contreras-Sweet requesting documents on the SBA's 
interpretation of the Anti-Deficiency Act as it applies to SBA 
loans.
    In July of 2015, when the SBA's 7(a) Guaranteed Loan 
Program was nearing the cap on its authorization level, the 
Committee worked in a bipartisan way with the Senate and the 
Obama Administration to establish administrative options to 
keep the program operating until a legislative compromise to 
raise the program's authorization level was reached. That 
compromise amends the Consolidated and Further Continuing 
Appropriations Act of 2015 to increase the 7(a) limit from 
$18.75 billion to $23.5 billion for Fiscal Year 2015 
commitments for general business loans, and was included in 
H.R. 2499, the Veterans Entrepreneurship Act. H.R. 2499 also 
prohibits the SBA, starting October 1, 2015, from guaranteeing 
a loan if the lender determines that the borrower is unable to 
obtain credit elsewhere solely because the lender's liquidity 
depends upon the guaranteed portion of the loan being sold on 
the secondary market, or the sole purpose for requesting the 
guarantee is to allow the lender to exceed its legal lending 
limit. The bill passed the House by a vote of 410-1, was signed 
into law on July 28, 2015, and became Pub. L. No. 114-38. The 
Committee will continue to closely monitor the operation of the 
7(a) Loan Program.
    In addition, the Committee sent several letters regarding 
access to capital issues. Chairman Chabot joined nineteen other 
Members in sending a letter to Secretary of the Treasury Jacob 
Lew on May 3, 2016 expressing concern about recent comments by 
public officials indicating there might be a preference to 
regulate lending to small businesses and consumers similarly. 
The letter asked Secretary Lew to provide answers to questions, 
such as what studies the Department has undertaken to ascertain 
how small businesses utilize credit.
    After industry partners contacted Chairman Chabot and 
Ranking Member Velazquez regarding continued delays in the 
processing of SBA Section 504 loan documents, Chairman Chabot 
and Ranking Member Velazquez sent a letter to SBA Administrator 
Contreras-Sweet on September 19, 2016 requesting an explanation 
for the delays and requesting details on the SBA's plan to 
rectify them.
    Following the revelations regarding Wells Fargo and their 
``improper sales practices'' which were the subject of a 
Consent Order with the Consumer Financial Protection Bureau, 
the Committee sent two letters, one to Wells Fargo and one to 
SBA. Wells Fargo is leading participant in SBA lending 
programs, such as the 7(a) and 504 Programs. On October 5, 
2016, the Committee sent a letter to then Chief Executive 
Officer John Stumpf of Wells Fargo requesting information on 
the number of fraudulent bank accounts and credit card accounts 
that were associated with small businesses. In addition, the 
Committee asked whether the improper sales practices affected 
Wells Fargo's lending practices and participation in SBA's 
lending programs. The Committee also sent a letter to SBA on 
October 5, 2016, which requested information on Wells Fargo's 
participation in SBA's lending programs. Wells Fargo responded 
to the Committee's inquiries by a letter dated October 19, 2016 
which indicated that Wells Fargo was engaging a third party to 
review all accounts dating back to 2009 in order to identify 
those that might have been affected. The Committee sent a 
follow-up letter to Wells Fargo on November 18, 2016 requesting 
that the bank continue to provide updates to the Committee 
throughout its review. The Committee is continuing to 
investigate the extent to which small businesses were affected 
by Wells Fargo's improper sales practices and the ramifications 
for small businesses' access to credit.

Sec. B. Oversight of SBA and Other Entrepreneurial Development Programs

    About a quarter of the SBA's budget is devoted to providing 
outreach and technical assistance to small businesses. This is 
done through the many SBA entrepreneurial development programs. 
As part of the process for submitting its budget views and 
estimates in 2015 and 2016, the Committee assessed the SBA's 
entrepreneurial development programs and made recommendations 
to eliminate those the Committee believes are duplicative or 
mirror those provided by the private sector. During 2015 and 
2016, the Committee and its subcommittees continued this 
oversight, conducting several hearings on entrepreneurial 
development programs and reported legislation to reauthorize 
and improve several programs.
    On February 2, 2016, the Subcommittee on Economic Growth, 
Tax and Capital Access held a hearing titled ``SBA Management 
Review: Oversight of SBA's Entrepreneurial Development 
Offices.'' The Subcommittee heard testimony from two SBA 
officials, and probed the SBA about a $1 million upgrade to the 
SBA's Entrepreneurial Development Management System. Tameka 
Montgomery, SBA's Associate Administrator of the Office of 
Entrepreneurial Development, said the redesigned system was not 
effective at achieving its purpose, which is measuring the 
performance outcomes of programs designed to help 
entrepreneurs. Also at the hearing, Subcommittee Members noted 
that the Committee, on a bipartisan basis, criticized SBA's 
efforts to create unauthorized initiatives that divert funds 
and agency resources and frequently duplicate those that 
Congress has specifically directed the SBA to implement. The 
hearing followed a comprehensive report by the Government 
Accountability Office which raised questions about agency-wide 
inefficiency that may extend to SBA's Office of Entrepreneurial 
Development.
    On March 23, 2016, the Committee reported an Amendment in 
the Nature of a Substitute to H.R. 207, the Small Business 
Development Centers Improvement Act, which reauthorizes and 
improves several entrepreneurial development programs 
administered by the SBA. H.R. 2017 was reported to the House as 
amended by voice vote.

Sec. C. Oversight of Federal Government Contracting Matters

    A primary mission of the SBA is to ensure that small 
businesses receive a ``fair proportion of the total purchases 
and contracts for property and services for the Government in 
each category . . .'' 15 U.S.C. Sec. 644(a). To achieve this 
objective, Congress established a number of programs designed 
to increase federal contracting opportunities for small 
businesses. Similarly, given that the federal government is the 
largest consumer of products and services, it benefits from a 
competitive market. The SBA's programs help to ensure that 
small businesses are given a fair share of opportunities to 
sell to the federal government, and the Committee's job is to 
oversee the SBA's policies.
    The Committee and its subcommittees held a total of 17 
hearings on issues related to federal government contracting. 
Those hearings are described in Parts B and C, supra. For the 
sake of brevity, they will not be repeated here. While these 
sessions were important and informative, the Committee took a 
number of actions to supplement this oversight.
    In the Committee's view, the SBA has failed to enforce the 
statutory standards and make the regulatory changes that result 
in a robust procurement sector. As a result, the Committee will 
continue to oversee the SBA's actions in this regard.
    The Committee has a continuing interest in whether and how 
many federal agencies suspend or debar companies engaged in 
procurement activity with the federal government. On December 
10, 2015, Subcommittee on Investigations, Oversight and 
Regulations Subcommittees Chairman Cresent Hardy (R-NV) sent 
letters to numerous federal agencies requesting information 
related to the suspension and debarment activity of those 
agencies. Also in December of 2015, Chairman Chabot sent 
letters to the senior procurement officials in numerous federal 
agencies requesting an assessment of the effect of the 
Department of Labor and Federal Acquisition Council's 
implementation of Executive Order 13673, which would require 
businesses seeking government contracts of more than $500,000 
to disclose any violations of 14 separate federal labor laws 
and Executive Orders and ``equivalent [s]tate laws.''
    In an effort to build on the Committee's accomplishments in 
opening federal contracting opportunities to small businesses, 
Chairman Chabot testified before the Committee on Armed 
Services with Ranking Member Nydia Velazquez (D-NY) on March 1, 
2016 regarding the small business contracting provisions in 
H.R. 4909, the National Defense Authorization Act for Fiscal 
Year 2017. A number of small business contracting provisions 
were included in Title 18 of H.R. 4909, which passed the 
Committee on Armed Services, as amended, on April 28, 2016 by a 
vote of 60-2. The bill passed the full House on May 18, 2016 by 
a vote of 277-147 (Roll Call Vote No. 216). Included on page 
740 of Title XVIII of H.R. 4909 is directive report language 
requiring the Government Accountability Office (GAO) to review 
the Small Business Administration's Office of Government 
Contracting and Business Development and report to the House 
Committee on Small Business and the Senate Committee on Small 
Business and Entrepreneurship. Also included on pages 740-741 
of Title XVIII of H.R. 4909 is directive report language 
requiring GAO to review the Small Business Administration's 
surety bond program and report to both committees.
    The Committee examined the Small Business Innovation and 
Research (SBIR) and the Small Business Technology Transfer 
(STTR) Programs as modified by the National Defense 
Authorization Act for FY 2013, Pub. L. No. 112-81. The 
Committee began the examination, including efforts to increase 
the commercialization of federally funded technology, with the 
goal of reauthorizing the programs in 2016. On March 2, 2016, 
the Committee held a hearing titled ``Commercializing on 
Innovation: Reauthorizing the Small Business Innovation 
Research and Small Business Technology Transfer Programs.'' At 
the hearing, John Williams, Director of Innovation and 
Technology in the Office of Investment and Innovation at the 
Small Business Administration, stated that currently firms are 
limited in using SBIR funds to support activities that help 
commercialize products and services. Robert Smith, Director of 
SBIR and STTR programs for the Department of the Navy's Office 
of Naval Research, explained that the Navy's current 
initiatives for the SBIR/STTR Program include making awards to 
new firms, reducing award delays and using non-SBIR/STTR funds 
to promote innovation. After the hearing, Chairman Chabot sent 
Mr. Williams some additional questions to ensure a complete 
hearing record.
    On March 8, 2016, the Subcommittee on Health and Technology 
held a field hearing in Lynn, Massachusetts titled 
``Commercializing on Innovation: Reauthorizing the Small 
Business Innovation Research and Small Business Technology 
Transfer Programs: Part II.'' Members heard testimony from 
small businesses who described the program as sound in concept 
and effective in practice. On March 23, 2016, the Committee 
reported H.R. 4783, the Commercializing on Small Business 
Innovation Act of 2016, introduced by Chairman Chabot, to 
reauthorize the SBIR and STTR programs. H.R. 4783 was reported 
as amended by voice vote.
    Members remain concerned about the health of the industrial 
base. On April 5, 2016, Chairman Chabot and Ranking Member 
Velazquez sent a letter to Denise Turner Roth, Administrator of 
the General Services Administration (GSA) expressing concern 
about the low number of small business suppliers to the federal 
government. They stated that this has resulted in a weakened 
national industrial base. The Chairman and Ranking Member also 
requested information on the steps that GSA is taking to remove 
barriers for small businesses that wish to do business with 
GSA.
    Following a February 3, 2016 hearing on delays in agency 
rulemaking, by the Subcommittee on Contracting and Workforce, 
Chairman Richard Hanna sent a letter to A. John Shoraka, 
Associate Administrator, Office of Government Contracts and 
Business Development at SBA asking that they work together on 
ways to speed the rulemaking process. This is particularly 
important for small businesses that operate on thin margins and 
need contracting decisions quickly.
    The GAO is reviewing two federal contracting matters that 
are focused on the Department of Defense (DOD) at the request 
of the Committee on Armed Services and its Chairman, Mac 
Thornberry. The first concerns cancelled solicitations, and is 
a mandatory request of the Committee on Armed Services in House 
Report 114-102. The second concerns the length of time that it 
takes for DOD to award contracts and the factors that extend 
the amount of time necessary to complete awards. Subcommittee 
on Contracting and Workforce Chairman Richard Hanna requested, 
and received, permission to join both of the GAO reviews as a 
co-requestor. A legislative mandate requires the SBA to develop 
a scorecard program to begin in Fiscal Year 2017 to evaluate 
federal agency compliance with small business contracting 
goals. GAO will evaluate the process.
    A joint request in July 2015 by the Subcommittee on 
Investigations, Oversight and Regulations of the Committee on 
Small Business and the Subcommittee on Oversight and 
Investigations of the Committee on Veterans' Affairs asked GAO 
to report on whether veterans' preferences in federal 
procurement benefit only veterans. The report was released at a 
joint hearing of the two subcommittees on November 4, 2015.
    On October 9, 2015, Chairman Chabot asked GAO to 
investigate the SBA's assignment of North American Industrial 
Classification System codes for small businesses. In April 
2015, Chairman Chabot and Ranking Member Velazquez asked GAO to 
investigate the Offices of Minority and Disadvantaged Business 
Utilization across all federal government agencies to ascertain 
whether they are adhering to numerous statutory requirements. 
Additionally, on December 10, 2015, the Chairman and Ranking 
Member asked GAO to review the SBA's Office of Small and 
Disadvantaged Business Utilization. These investigations are 
likely to continue into 2017.
    The Committee was successful in incorporating two mandatory 
Government Accountability Office investigations of small 
business contracting issues into H.R. 4909, the National 
Defense Authorization Act for Fiscal Year 2017. The first 
requires GAO to review the SBA's Office of Government 
Contracting and Business Development and report to the House 
Committee on Small Business and the Senate Committee on Small 
Business and Entrepreneurship. The second requires GAO to 
review the SBA's surety bond program and report to the House 
Committee on Small Business and the Senate Committee on Small 
Business and Entrepreneurship.
    The Committee also held a hearing on September 7, 2016 to 
examine the SBA's Historically Underutilized Business Zones 
(HUBZone) Program, which seeks to incentivize economic 
development by providing access to federal contracting 
opportunities to small businesses located in economically 
distressed areas of the country. Several GAO reviews have 
identified areas where the HUBZone Program could be improved, 
particularly ensuring that only qualified small businesses 
participate in the Program. At the hearing, William B. Shear, 
Director of Financial Markets and Community Investment at the 
GAO, testified that while SBA has taken some steps to implement 
GAO's recommendations to improve oversight of the HUBZone 
Program, further work remains to be done. John Shoraka, 
Associate Administrator of the Office of Government Contracts 
and Business Development at the SBA stated that the agency had 
almost fully implemented the GAO's recommendations. During the 
hearing, Mr. Shoraka also revealed that the SBA's Office of 
General Counsel had determined that the agency had the 
authority to expand the HUBZone designation beyond the 20 
percent cap for certified census tracts in a metropolitan 
statistical area. Committee members were skeptical of SBA's 
newly found authority at the hearing, and the Committee's 
examination of the HUBZone Program will continue into 2017.

Sec. D. Oversight of SBA Management

    The Committee continues to oversee the management of the 
Small Business Administration (SBA) through hearings and 
meetings with agency personnel and industry representatives. 
The hearings held by the Committee and its subcommittees are 
detailed in Parts A, B and C, supra, and will not be repeated 
verbatim here.
    However, the Committee's hearings on the overall management 
of the SBA deserve some explication. As noted above, in January 
of 2016, the Committee held two hearings on a Government 
Accountability Office (GAO) report requested by the Committee 
on SBA mismanagement. GAO found extensive and ongoing 
deficiencies in SBA's management, including problems with 
operating procedures, staff management, information technology 
and cyber security.
    In March of 2015, to better oversee the SBA's operation and 
management, Chairman Chabot wrote SBA Administrator Contreras-
Sweet to request that the SBA notify the Committee of any 
critical changes in the operation of the SBA. Specifically, 
Chairman Chabot requested: copies of new standard operating 
procedures (SOP) or changes in existing SOPs; any procedural 
notice issued by any office of the SBA; any proposed or final 
rule published in the Federal Register; announcements of new 
programs; and any reorganization plans for the agency.
    In February of 2016, the Subcommittee on Investigations, 
Oversight and Regulations held an oversight hearing on SBA's 
Office of Advocacy and the Office of the National Ombudsman. 
The hearing examined management challenges for each office. 
Critical issues for the Office of Advocacy include having a 
Senate-confirmed Presidential appointee leading the office and 
succession planning. Staying focused on its sole duty of 
oversight of unfair or excessive regulatory enforcement 
activities is a challenge for the Office of the National 
Ombudsman. In addition, it is unclear if the Office of the 
National Ombudsman is properly administering the Regional 
Regulatory Fairness Boards, which are made up of owners, 
operators, or officers of small businesses. After the hearing, 
the Subcommittee sent Questions for the Record to the SBA and 
the Office of Advocacy witnesses for each office to obtain 
answers to additional questions for the hearing record.

Sec. E. Oversight of Federal Regulatory and Paperwork Burdens

    Cl. 1(q) of Rule X of the Rules of the House of 
Representatives provides that the Committee's jurisdiction 
includes the protection of small businesses and regulatory 
flexibility. This Rule is recognition that the current 
regulatory regime may inhibit the ability of small firms to 
conduct commerce. The Committee's past work on the Regulatory 
Flexibility Act, Pub. L. No. 96-354, and its subsequent 
legislation to amend the Act, H.R. 527, the Small Business 
Regulatory Flexibility Improvements Act of 2015, described 
supra, underscore the importance the Committee places on 
strengthening requirements that federal agencies tailor their 
regulations to reduce economic burdens on small businesses.
    The Committee is continuing to take an active role in 
overseeing how federal agencies develop their regulations in 
order to ensure that these rules do not impose undue burdens on 
small businesses. The Committee remains very concerned about 
the effect on small businesses of numerous proposed and final 
rules issued by federal government agencies. The Committee's 
interactive website tool, Reg Watch, regularly lists the 
details of numerous proposed federal regulations affecting 
small businesses so that entrepreneurs can review and comment 
on them.
    The Committee and its subcommittees held a total of 12 
hearings on the burdens of federal regulation on small 
businesses. Those hearings are detailed in Parts A and B, 
supra, and will not be reiterated here. In addition, the 
Committee held a number of Member Roundtables on key issues.
    On April 30, 2015, the Committee held a roundtable for 
Republican Committee Members on how a new National Labor 
Relations Board (NLRB) joint employer standard could affect 
small businesses. The roundtable focused on the existing 
standard for determining whether two employers may be 
considered joint employers for the purposes of the National 
Labor Relations Act, and the new standard advocated by the 
NLRB's General Counsel.
    Chairman Chabot sent a letter on May 13, 2015 to the Office 
of Management and Budget's Office of Information and Regulatory 
Affairs Administrator, Howard Shelanski, urging him to return 
the Environmental Protection Agency (EPA) and Army Corps of 
Engineers' (Corps) draft final rule to revise the definition of 
Waters of the United States to the agencies for 
reconsideration. The letter focused on the EPA and Corps 
failure to comply with the Regulatory Flexibility Act's 
requirements to conduct a Small Business Advocacy Review panel 
and assess the economic impacts of the rule on small 
businesses, as well as the flawed definition proposed by the 
agencies.
    On May 15, 2015, Chairman Chabot, along with House Energy 
and Commerce Committee Chairman Fred Upton, Senate Environment 
and Public Works Committee Chairman James Inhofe and Senate 
Small Business and Entrepreneurship Committee Chairman David 
Vitter sent a letter to EPA Administrator Gina McCarthy 
regarding the Small Business Advocacy Review panel process for 
the Section 111(d) Federal Plan Rulemaking under the Clean 
Power Plan. The letter focused on agency's compliance with 
Section 609(b) of the Regulatory Flexibility Act to ensure that 
small entities were able to provide meaningful input into the 
rulemaking process.
    On June 8, 2015, Chairman Chabot sent a letter to Federal 
Communications Commission (FCC) Chairman Thomas Wheeler. The 
letter urged Chairman Wheeler to investigate all aspects of 
bidding on AWS-3 spectrum licenses to ensure that small 
businesses are able to participate fairly.
    On July 15, 2015, Chairman Chabot, Subcommittee on 
Contracting and Workforce Chairman Richard Hanna, and 
Subcommittee on Investigations, Oversight and Regulations 
Chairman Cresent Hardy joined House Education and Workforce 
Chairman John Kline, House Oversight and Government Reform 
Committee Chairman Jason Chaffetz, and Subcommittee chairmen 
from both Committees in sending a letter to Secretary of Labor 
Thomas E. Perez and Administrator Anne Rung of the Office of 
Federal Procurement Policy at the Office of Management and 
Budget regarding implementation of Executive Order 13,673, 
which requires contractors and subcontractors to disclose 
potential violations of 14 federal labor laws and equivalent 
state laws. The chairmen requested that the agencies withdraw 
guidance and rule that had been proposed to implement the E.O. 
The letter on the duplicative, burdensome reporting 
requirements that would be imposed on small and large 
employers, federal agencies, and American taxpayers, the 
Department of Labor's (DOL) failure to identify equivalent 
state laws that would be covered, and delays in federal 
contracting and costs that would be imposed on taxpayers. On 
September 10, 2015, the Committee convened a roundtable that 
examined the DOL and Federal Acquisition Regulatory Council's 
implementation of E.O. 13,673.
    The Committee continues to be concerned about the effect of 
financial services regulations on community banks and credit 
unions. On October 27, 2015, Chairman Chabot asked GAO to 
review and report on the effects of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act, Pub. L. No. 111-203, on 
community banks and credit unions. Later, GAO will produce a 
second report on the impact of Dodd-Frank and its regulations 
on capital formation, community bank and credit union market 
share, and small business lending.
    On November 19, 2015, Chairman Chabot, along with all 
twelve Republican members of the Committee on Small Business, 
and House Energy and Commerce Committee Chairman Fred Upton and 
all Republican members of that committee, sent a letter to FCC 
Chairman Tom Wheeler urging him to permanently exempt small 
businesses from the FCC's burdensome Open Internet Order 
regulations.
    On December 11, 2015, Subcommittee on Oversight, 
Investigations and Regulations Chairman Cresent Hardy sent a 
letter to Thomas Perez, Secretary of Labor, recapping testimony 
from the Subcommittee's hearing titled ``The Consequences of 
DOL's One-Size-Fits-All Overtime Rule for Small Businesses.'' 
The hearing witnesses raised several problematic issues with a 
proposed rule issued by the Department of Labor (DOL) to revise 
the existing Fair Labor Standards Act regulations that 
implement the exemption from minimum wage and overtime pay for 
certain employees. The hearing illuminated serious concerns 
that were raised, such as those that small firms, particularly 
in rural areas, will be unable to increase their workers' 
salaries to the proposed salary threshold and remain 
economically viable. As a result, businesses will have no 
choice but to move salaried workers to hourly status, reduce 
hours and trim benefits. In addition, the DOL has proposed 
making the salary threshold increases automatic on an annual 
basis. Doing so would deny small businesses and others the 
opportunity to provide input.
    Chairman Chabot was asked by House Speaker Paul Ryan to 
participate in his Regulatory Reform Task Force, a select group 
of House Committee Chairmen who met regularly with other 
Members of the conference throughout 2016 to discuss ideas for 
reducing the burden of regulations on individuals and 
businesses, particularly small businesses. The areas of 
concentration were financial services, energy and environment, 
and labor and workforce. The Task Force chairmen also held a 
series of Idea Forums with trade associations and small 
businesses. Listening Sessions with Members of Congress were 
held to generate suggestions for regulatory reform. Those ideas 
were used to develop a Task Force White Paper that was released 
on June 14, 2016 and subsequent legislation to help reduce 
regulatory burdens on individuals and small businesses.
    On March 15, 2016, the Committee held a roundtable for 
Republican Committee Members to examine 13 Executive Orders and 
Presidential Memoranda issued since 2009 directed at federal 
contractors, as well as an Executive Order and a Presidential 
Memorandum that covers federal contractors in addition to other 
employers. Many of the Executive Orders and Presidential 
Memoranda are being implemented by federal agencies through new 
regulations.
    On March 16, 2016, Chairman Chabot joined House Education 
and Workforce Chairman John Kline, House Oversight and 
Government Reform Committee Chairman Jason Chaffetz in sending 
a letter to the DOL requesting an extension of the comment 
period for the proposed rule titled ``Establishing Paid Sick 
Leave for Federal Contractors''' that was issued to implement 
E.O. 13,706.
    On April 28, 2016, Chairman Chabot and Republican Committee 
Members sent a letter to the Office of Management and Budget's 
Office of Information and Regulatory Affairs Administrator, 
Howard Shelanski, urging him to return the DOL's draft final 
rule to revise its regulations related to overtime pay to the 
DOL for reconsideration.
    On May 3, 2016, Chairman Chabot sent a letter with 10 other 
House Members to Secretary of the Treasury Jacob Lew asking 
whether the Department of Treasury is considering regulating 
lending to small businesses and consumers similarly.
    On May 6, 2016, Chairman Chabot joined House Energy and 
Commerce Committee Chairman Fred Upton (R-MI) and Energy and 
Commerce Subcommittee on Energy and Power Chairman Ed Whitfield 
(R-KY) on a letter to Environmental Protection Agency (EPS) 
Administrator Gina McCarthy expressing concern about the EPA's 
proposed rule on ``Accidental Release Prevention Requirements: 
Risk Management Programs under the Clean Air Act.'' 
Specifically, the Chairmen requested that EPA extend the 
comment period on the proposed rule because it is lengthy and 
complex, and it is uncertain whether EPA had considered 
comments from small entities.
    The Committee also questioned why Congress has not received 
long overdue reports from the Office of Management and Budget 
that are required under the Paperwork Reduction Act. On May 26, 
2016, Chairman Chabot and Chairman Jason Chaffetz of the House 
Committee on Oversight and Government Reform sent a letter to 
the Office of Management and Budget (OMB) requesting the long 
overdue reports that are required to be sent from OMB to the 
Committee on Small Business under the Paperwork Reduction Act.
    On June 15, 2016, the Committee's Republicans held a 
roundtable to gain input from small businesses on DOL's final 
overtime rule. Committee members and entrepreneurs discussed 
how the Obama Administration's pattern of regulatory overreach 
has created an atmosphere of uncertainty for America's small 
businesses and hurt the very employees they claim to help.
    On June 23, 2016, the full Committee held a hearing titled 
``Damaging Repercussions: DOL's Overtime Rule, Small Employers, 
and their Employees.'' The Committee heard testimony from a 
small business owner and payroll administrator; a small tech 
company owner; a Nevada county commissioner; and an attorney 
and human resources consultant. All witnesses testified that 
the new DOL overtime rule would severely restrict their 
flexibility and ability to hire, schedule, motivate and 
compensate their employees. They further stated that the rule 
would cause them to reduce employees and employee hours.
    On August 25, 2016, Chairman Chabot and Ranking Member 
Velazquez wrote to FCC Commissioner Tom Wheeler that the FCC's 
privacy proposals would result in rules that have a negative 
economic impact on small Broadband Internet Access (BIAS) 
providers. In particular, the Chairman and Ranking Member 
expressed concerns that the FCC had failed to fully or 
adequately comply with the Regulatory Flexibility Act in 
promulgating the proposals because its analysis did not 
describe or quantify the economic impacts on small entities. On 
October 3, 2016, the Chairman and Ranking Member sent a follow-
up letter to Commissioner Wheeler because the FCC had not 
replied to their letter of August 25, 2016.
    On September 12, 2016, Chairman Chabot joined Rep. Pete 
Olson, Vice Chairman of the House Energy and Commerce 
Committee's Subcommittee on Energy and Power, in sending a 
letter to EPA regarding two rules, one final and one proposed, 
promulgated under the Clean Air Act's Significant New 
Alternatives Policy (SNAP) Program that would restrict the use 
of certain refrigerants. Complying with the rules poses 
significant challenges for small manufacturers of affected 
products.

Sec. F. Oversight of Federal Tax Matters

    The Committee and its subcommittees held 12 hearings on 
federal tax policy. These hearings are described in Part A, 
supra, and will not be repeated verbatim here. In addition, 
numerous meetings were held with industry representatives to 
gauge the impact of tax policies on small firms.
    On April 15, 2015, the Committee held a hearing focused on 
need for tax reform for small businesses. The Government 
Accountability Office produced a report in June 2015 that was 
requested by the Committee in 2014 on the tax compliance burden 
on small businesses. GAO found that burden of tax compliance 
varies depending on the businesses' asset size, filing entity, 
number of employees and industry type. GAO also reported that 
given the importance of small businesses to the United States 
economy, reducing the cost of compliance may free resources for 
hiring new employees and expanding the business. However, a key 
challenge for the Internal Revenue Service (IRS) is balancing 
efforts to minimize taxpayer burden with efforts to encourage 
voluntary compliance. On July 22, 2015, the Committee held a 
hearing focused on tax compliance problems facing small 
businesses. In addition, on December 3, 2015, the Committee 
held a hearing on tax extenders and the importance of 
particular policies for small businesses.
    In 2016, the Committee worked to remove anti-small business 
provisions in the Treasury Department's proposed 
nondiscrimination rules for certain retirement plans. The 
Committee made Deputy Assistant Secretary of the Treasury for 
Retirement and Health Policy Mark Iwry aware of the Committee's 
concerns regarding the rule's negative effect on small 
businesses. After the Committee noticed a Subcommittee hearing 
for April 19, 2016 on the rule, the IRS announced it would 
withdraw the problematic provisions and the Committee cancelled 
the planned hearing.
    On April 13, 2016, the Committee held a pair of hearings, 
one in the Subcommittee on Economic Growth, Tax and Capital 
Access and one in the full committee, focused on simplifying 
the tax code for small businesses and the tax practitioners who 
serve them. In the morning Subcommittee hearing, Committee 
Members heard from small businesses. In the afternoon, 
Committee Members were able to engage in a dialogue on 
simplification with John Koskinen, the Commissioner of the IRS.
    On April 27, 2016, the Committee held a hearing on 
employee-owned S corporations and examined H.R. 2096, the 
Promotion and Expansion of Private Employee Ownership Act of 
2015.
    On May 24, 2016 and May 26, 2016, the Committee held two 
hearings on the tax issues surrounding the sharing economy. 
Committee Members questioned public and private sector 
witnesses on the impact of outdated IRS policies on small 
businesses.
    Committee Members continue to be concerned about the IRS's 
treatment of small businesses. On June 20, 2016, Chairman 
Chabot and Ranking Member Velazquez sent a letter to IRS 
Commissioner John Koskinen expressing concern about the IRS's 
treatment of the Research and Development tax credit for small 
firms. On September 14, 2016, the Committee held a second 
hearing on the experiences of small businesses under IRS audit.

Sec. G. Oversight of Health Care Policy

    In February of 2015, Chairman Chabot sent a letter to 
Secretary of Health and Human Services Sylvia Mathews Burwell 
requesting information on the incorrect tax forms that were 
sent to many Americans. Specifically, Secretary Burwell was 
asked to provide the number of small businesses that may have 
received incorrect information after purchasing health 
insurance through the Small Business Health Options Program 
(SHOP) exchange. The Committee was concerned that compliance 
with the new SHOP system and the misinformation created more 
uncertainty in an already confusing tax season for small 
businesses.
    On March 22, 2016, the Subcommittee on Economic Growth, Tax 
and Capital Access held a hearing titled ``Lip Service and 
Little Else: Failure of the Small Business Health Insurance Tax 
Credit.'' The hearing featured small business owners who 
described their disappointment at not qualifying for the health 
care law's small business tax incentive. An official with the 
Government Accountability Office (GAO) testified about the 
study the Committee on Small Business requested from GAO in 
2012 that examined the credit. GAO's updated report in 2015 
found that only 180,000 small businesses used the credit 
because it was too complicated, applied too narrowly and was 
too time consuming to compute. NFIB also provided data on the 
failure of small firms to utilize the credit, and suggested 
ways to reform it.
    Chabot sent a letter on May 12, 2015 to Kevin Counihan, 
Marketplace Chief Executive Officer at the Centers for Medicare 
and Medicaid Services requesting the total number of Small 
Business Health Options Program (SHOP) small businesses and 
employees that were enrolled. After repeatedly requesting 
current information on the number of small businesses and their 
employees who are enrolled in the SHOP program, Chabot and 
Senate Small Business and Entrepreneurship Committee Chairman 
David Vitter sent a letter to United States Health and Human 
Services Secretary Sylvia Matthews Burwell requesting current 
SHOP enrollment figures.

Sec. H. Oversight of International Trade Policy

    The Committee and its subcommittees held 5 hearings on 
international trade policy during the 114th Congress. The 
topics and descriptions of those hearings are detailed in Parts 
A and B, supra, and will not be repeated here.
    Chairman Chabot worked with the Committee on Ways and Means 
and the Senate Finance Committee to incorporate provisions of 
Chairman Chabot's legislation, H.R. 2587, the State Trade 
Coordination Act of 2015 in H.R. 644, the Trade Facilitation 
and Trade Enforcement Act of 2015 and its Conference Report.
    The legislation directs the Secretary of Commerce, in 
coordination with representatives of state trade promotion 
agencies, to develop a plan to integrate resources and 
strategies of state trade promotion agencies into the overall 
federal trade promotion program. In addition, the legislation 
directs the Secretary, with the head of the U.S. Commercial 
Service, to develop an annual federal-state export strategy for 
goods and services for each state. The Conference Report 
accompanying H.R. 644 passed the House on December 11, 2015 and 
the Senate on February 11, 2016. The bill was signed by the 
President on February 24, 2016 and became Pub. L. No. 114-125.

Sec. I. Reductions in Programs and Spending

    In February, 2015 and February, 2016, the Committee 
reported its budget views and estimates. In those letters, the 
Committee voiced its concerns that the current federal 
government regulatory scheme is making it difficult for small 
businesses to comply with regulations. Rather than promoting 
economic progress, the federal government is imposing a 
regulatory regime that is making it increasingly difficult for 
small businesses to compete in a global economy. In fact, the 
biggest problem facing entrepreneurs today is overly burdensome 
regulations.
    In 2015, the Committee noted that SBA had requested $37 
million in SBA-initiated entrepreneurial development programs 
that have not been reviewed or approved by the Committee, and 
which duplicate long standing small business outreach efforts. 
In addition, there is no evidence that such programs have been 
adequately assessed by SBA prior to their implementation. Those 
funds could be reallocated to the priorities imposed on the SBA 
by Congress rather than SBA acting on its own list of 
priorities.
    In both 2015 and 2016, the Committee expressed concern 
about SBA's use of its pilot program authority under 
Sec. 7(a)(25) of the Small Business Act. The authority was 
provided to SBA to ensure flexibility to meet unexpected needs 
of a diverse small business economy. However, SBA has abused 
the authority by creating programs that last longer than one 
would expect a pilot program to last, frequently adding to the 
cost of the 7(a) Loan Program (through higher default rates). 
Furthermore, the programs are created without the benefit of 
the notice and comment rulemaking process so neither lenders or 
borrowers can provide input.
    Finally, Chairman Chabot and Ranking Member Velazquez, in 
an effort to find improvements in management and processes that 
will reduce spending and increase efficiency, requested a 
Government Accountability Office report on the overall 
management of SBA. That report, titled ``Small Business 
Administration: Leadership Needed to Overcome Challenges,''\20\ 
was issued on October 28, 2015 and was the subject of two full 
Committee hearings in January of 2016. In the report, GAO made 
eight new recommendations to improve SBA's program evaluations, 
strategic and workforce planning, organizational structure, 
procedural guidance, and oversight of information technology 
investments. GAO also reported that 69 recommendations that it 
made in prior work have merit and should be fully implemented, 
but the SBA has not done so.
---------------------------------------------------------------------------
    \20\Government Accountability Office, GAO-15-247, released Oct. 28, 
2015.

                           REGULATORY REVIEW

  Legislative and Oversight Activity Related to Regulations, Orders, 
 Administrative Actions and Procedures by Federal Agencies Within the 
          Jurisdiction of the Committee on Small Business\21\
---------------------------------------------------------------------------

    \21\Under House Rule X, the Committee on Small Business has 
jurisdiction over the protection of small business including 
``financial aid, regulatory flexibility, and paperwork reduction'' as 
well as jurisdiction over the participation of small businesses in 
government contracts. In addition, under Rule X, cl. 3(l), the 
Committee has continuing oversight of ``problems of all types of small 
business.''
---------------------------------------------------------------------------
    The Committee continues to closely monitor federal agency 
regulations that affect small businesses and their 
implementation. A comprehensive review of the Committee's 
regulatory oversight is detailed below. The Committee maintains 
and regularly updates Reg Watch, an online regulatory tool, 
which explains proposed federal regulations that may 
significantly impact small entities, and provides a means for 
small business owners to comment directly to the agency.
114th Congress, First Session
    1/21/15. Chairman Chabot sent a letter to Maria Contreras-
Sweet, Administrator, United States Small Business 
Administration, regarding the use of SBA's Office of Small and 
Disadvantaged Business Utilization.
    2/25/15. Chairman Chabot sent a letter to Department of 
Health and Human Services Secretary Sylvia Burwell requesting 
information on the number of small businesses enrolled in the 
Small Business Health Options Program (SHOPs).
    3/8/2015. The Committee held a hearing to examine 
challenges that small manufacturers were facing with existing 
regulatory requirements and new regulations. The hearing 
focused on Department of Labor, Department of Energy, and 
Environmental Protection Agency regulations.
    3/12/15. The Committee held a staff briefing which provided 
an overview of potential consequences of a new National Labor 
Relations Board joint employer standard.
    3/23/15. Chairman Chabot sent a follow-up letter to 
Department of Health and Human Services Secretary Sylvia 
Burwell again asking for information on the number of enrollees 
in the SHOP program.
    3/27/15. Chairman Chabot sent a comment letter to the Small 
Business Administration regarding the handling of SBA loans to 
franchisees.
    4/30/15. The Committee held a Member Roundtable examining 
the potential effects of a new National Labor Relations Board 
joint employer standard.
    5/12/15. Chairman Chabot sent a letter to Kevin Counihan, 
Marketplace Chief Executive Officer, Centers for Medicare and 
Medicaid Services, requesting the total number of enrollees in 
the Small Business Health Options Program (SHOPs).
    5/13/15. Chairman Chabot sent a letter to the Office of 
Management and Budget's Office of Information and Regulatory 
Affairs (OIRA) Administrator Howard Shelanski urging OIRA to 
return the Environmental Protection Agency and Army Corps of 
Engineers' draft rule on Waters of the United States to the 
agencies for reconsideration.
    5/15/15. Chairman Chabot, along with House Energy and 
Commerce Committee Chairman Fred Upton (R-MI), Senate 
Environment and Public Works Committee Chairman James Inhofe 
(R-OK) and Senate Small Business and Entrepreneurship Committee 
Chairman David Vitter (R-LA), sent a letter to Environmental 
Protection Agency Administrator Gina McCarthy regarding a Small 
Business Advocacy Review Panel for Section 111(d) Federal Plan 
Rulemaking.
    6/5/15. Chairman Chabot sent a letter to the United States 
Government Accountability Office asking to be added as co-
requestor for the review of the Department of Veterans Affairs' 
Center for Veterans Enterprise's efforts to develop a 
verification program to ensure that veterans' preferences in 
federal procurement benefit only eligible small businesses. The 
review was initiated at the request of Representative Mike 
Coffman, chairman of the Subcommittee on Oversight and 
Investigations of the House Veterans' Affairs Committee. The 
report was released at a joint hearing on 11/4/15.
    6/25/15. The Subcommittee on Contracting and Workforce held 
a hearing on the General Service's Administration transactional 
data rule and its effect on small federal contractors.
    6/8/15. Chairman Chabot sent a letter to Federal 
Communications Commission Chairman Thomas Wheeler urging him to 
investigate all aspects of bidding on AWS-3 spectrum licenses 
to ensure small businesses are able to participate fairly.
    7/15/15. Chairman Chabot sent a joint letter with House 
Oversight and Government Reform Committee Chairman Jason 
Chaffetz (R-UT) and House Education and Workforce Committee 
Chairman Jon Kline (R-MN) to United States Secretary of Labor 
Thomas Perez and United States Office of Federal Procurement 
Policy Administrator Anne Rung requesting that the proposed 
rule and guidance on the implementation of Executive Order 
13673, requiring contractors and subcontractors disclose 
potential violations of 14 federal labor laws and equivalent 
state laws, be withdrawn.
    7/15/2015. The Committee held a hearing on the Federal 
Aviation Administration's proposed rule to permit commercial 
operations of small unmanned aircraft systems (UAS) and the 
expected utilization of small UAS by small businesses.
    7/22/15. Chairman Chabot held a hearing examining the tax 
compliance burden on small firms and examine the effectiveness 
of actions taken by the Internal Revenue Service intended to 
reduce small firms' tax compliance burden.
    9/10/15. The Committee held a Member Roundtable to examine 
the Department of Labor and Federal Acquisition Regulatory 
Council's implementation of Executive Order 13,673, which 
requires prospective federal contractors to disclose violations 
of 14 labor laws and ``equivalent state laws'' within the 
preceding three year period for small businesses that sell 
goods and services to the federal government.
    9/17/2015. The Subcommittee on Economic Growth, Tax and 
Capital Access held a hearing on how the regulatory changes 
resulting from the Dodd-Frank Wall Street Reform and Consumer 
Protection Act have affected small financial institutions and 
small businesses.
    9/29/2015. The Subcommittee on Contracting and Workforce 
and the Subcommittee on Investigations, Oversight and 
Regulations held a hearing to examine the Department of Labor 
and Federal Acquisition Regulatory Council's implementation of 
Executive Order 13,673 on small businesses that sell goods and 
services to the federal government.
    10/8/2015. The Subcommittee on Investigations, Oversight 
and Regulations held a hearing to examine the Department of 
Labor's proposed overtime rule and its assessment of the rule's 
economic impacts on small businesses as required by the 
Regulatory Flexibility Act.
    10/27/15. Chairman Chabot asked the United States 
Government Accountability Office to report on the effect of the 
Dodd-Frank Act and its regulations on small businesses.
    10/29/15. Chairwoman Radewagen of the Subcommittee on 
Health and Technology held a roundtable to discuss various 
Federal Communications Commission regulatory burdens imposed on 
small telecommunications providers.
    11/6/2015. The Subcommittee on Investigations, Oversight 
and Regulations held a field hearing in Las Vegas, NV to 
examine the effects of financial, land use and environmental 
regulations on small businesses.
    11/19/15. Chairman Chabot sent a joint letter with all 
twelve Republican Members of the Committee on Small Business, 
Chairman of the House Energy and Commerce Committee, and all 
Republican Members of the House Energy and Commerce 
Subcommittee on Communications and Technology to Federal 
Communications Commission (FCC) Chairman Tom Wheeler, urging 
him to permanently exempt small businesses from the FCC's 
burdensome Open Internet Order regulations.
    12/9/15. Chairman Chabot asked the United States Government 
Accountability Office to investigate the assignment of North 
American Industrial Classification System codes for small 
businesses.
    12/11/15. Subcommittee on Oversight, Investigations and 
Regulations Chairman Hardy sent a letter to United States 
Department of Labor Secretary Thomas Perez detailing the 
witness testimony at a Subcommittee hearing held on October 8, 
2015 titled ``The Consequences of DOL's One-Size-Fits-All 
Overtime Rule for Small Businesses and their Employees.''
    12/14/15. Chairman Chabot and Ranking Member Velazquez 
requested that the United States Government Accountability 
Office evaluate the extension to which Office of Small and 
Disadvantaged Business Utilization are implementing the 
requirements of Section 15(k) of the Small Business Act.
    12/18/2015. Subcommittee on Oversight, Investigations and 
Regulations Chairman Hardy sent letters to 23 agency officials 
requesting information on their suspension and debarment 
activities.
    12/18/2015. Chairman Chabot sent letters to 27 senior 
procurement officials at federal agencies requesting 
information on whether the proposed rule and guidance to 
implement E.O. 13,673, requiring contractors and subcontractors 
disclose potential violations of 14 federal labor laws and 
equivalent state laws, would negatively affect the ability of 
each agency to meet small business prime contracting goals, 
subcontracting goals, or provide the maximum practicable 
opportunity for small businesses to compete for federal 
contracts.

114th Congress, Second Session

    Ongoing. Chairman Chabot maintains and regularly updates 
Reg Watch, an online regulatory tool, which explains proposed 
federal regulations that may significantly impact small 
entities, and provides a means for small business owners to 
comment directly to the agency.
    1/6/16, 1/7/16. At the Committee's request, the United 
States Government Accountability Office investigated overall 
United States Small Business Administration mismanagement in a 
report released on 10/28/15. Two full Committee on Small 
Business hearings followed on 1/6/16 with GAO and 1/7/16 with 
SBA Administrator Maria Contreras-Sweet.
    1/11/16. The Subcommittee on Agriculture, Energy and Trade 
Chairman Carlos Curbelo held a hearing to review SBA's Office 
of International Trade. Eileen Sanchez, Associate Administrator 
of the Office of International Trade, testified regarding 
management challenges within SBA that were identified by GAO, 
and how those challenges impact the office's ability to serve 
small businesses.
    1/12/16. The Committee held a hearing to review SBA's 
Office of Capital Access and Office of Credit Risk Management. 
The Committee called Associate Administrator of Capital Access 
Ann Marie Mehlum, and Director of the Office of Credit Risk 
Management Linda Rusche, who testified regarding management 
challenges within SBA that were identified by GAO, and how 
those challenges impact their offices' ability to serve small 
businesses.
    1/12/16. The Subcommittee on Health and Technology 
Chairwoman Aumua Amata Coleman Radewagen held a hearing to 
review SBA's Office of Investment and Innovation. Mark Walsh, 
Associate Administrator of the Office of Investment and 
Innovation testified regarding management challenges within SBA 
that were identified by GAO, and how those challenges impact 
the office's ability to serve small businesses.
    2/2/16. The Subcommittee on Economic Growth, Tax and 
Capital Access Chairman Tim Huelskamp held a hearing to review 
SBA's Entrepreneurial Development Offices. Tameka Montgomery, 
Associate Administrator of the Office of Entrepreneurial 
Development, and Barb Carson, Associate Administrator of the 
Office of Veterans Business Development, testified regarding 
management challenges within SBA that were identified by GAO, 
and how those challenges impact their offices' ability to serve 
small businesses.
    2/3/16. The Subcommittee on Contracting and Workforce 
Chairman Richard Hanna held a hearing to review SBA's Office of 
Government Contracts and Business Development. A. John Shoraka, 
Associate Administrator of the Office of Government Contracts 
and Business Development for SBA testified regarding management 
challenges within SBA's business contracting programs.
    2/10/16. The Subcommittee on Investigations Oversight and 
Regulations Chairman Cresent Hardy held a hearing to examine 
the SBA Office of Advocacy and the SBA Office of the National 
Ombdusman. On February 29, 2016, Chairman Chabot sent letters 
to Darryl DePriest, Chief Counsel for Advocacy, United States 
Small Business Administration, and Rear Admiral Earl L. Gay, 
USN (Retired), Small Business and Agriculture Ombudsman, United 
States Small Business Administration, requesting written 
answers to Questions for the Hearing Record of February 10, 
2016.
    2/11/16. The Committee Chairman held a hearing to examine 
Department of State's and Department of Commerce's efforts and 
progress to complete Export Control Reform. On March 15, 2016, 
Chairman Chabot sent letters to the Honorable Brian Nilsson, 
Deputy Assistant Secretary for Defense Trade Controls, Bureau 
of Political-Military Affairs, United States Department of 
State, and the Honorable Kevin J. Wolf, Assistant Secretary of 
Commerce for Export Administration, Bureau of Industry and 
Security, United States Department of Commerce, requesting 
written answers to Questions for the Hearing Record of February 
11, 2016.
    2/25/16. Subcommittee on Contracting and Workforce Chairman 
Richard Hanna sent a letter to A. John Shoraka, Associate 
Administrator of the Office of Government Contracts and 
Business Development, United States Small Business 
Administration, following up on Mr. Shoraka's pledge at the 
Subcommittee's February 3, 2016 hearing on ways the SBA 
Administrator could work with the Federal Acquisition Council 
to expedite small business rulemakings.
    3/3/16. Chairman Chabot sent a letter to John Williams, 
Director of Innovation and Technology, Office of Investment and 
Innovation, United States Small Business Administration, 
requesting written answers to Questions for the Hearing Record 
of March 2, 2016.
    3/14/16. The Committee held a hearing to examine SBA's top 
management challenges as determined by SBA's Office of the 
Inspector General. Inspector General Peggy Gustafson testified 
as to the longstanding challenges within the agency.
    3/15/16. The Committee held a Member Roundtable examining 
13 Executive Orders and Presidential Memoranda that have been 
issued since 2009, many of which are being implemented by 
federal agencies through new regulations.
    3/16/16. Chairman Chabot sent a joint letter with Chairmen 
of the House Committee on Education and the Workforce and 
Committee on Oversight and Government Reform to the United 
States Department of Labor requesting an extension of the 
modest 47 day comment period on the Notice of Proposed 
Rulemaking titled ``Establishing Paid Sick Leave for Federal 
Contractors,'' which is intended to implement Executive Order 
13706.
    3/17/16. Subcommittee on Investigations, Oversight and 
Regulations Chairman Cresent Hardy held a hearing on the 
Department of Labor and National Labor Relations Board's 
proposed joint employer standard, which would change the long 
standing standard that defines when a business could be 
considered a joint employer and held liable for the other's 
compliance with federal labor laws. Small business owners 
testified that the new standard would do tremendous damage to 
their businesses as they seek to grow and add more workers.
    3/17/16. The Subcommittee on Contracting and Workforce 
hosted a Member roundtable with key industry groups on the 
Obama Administration's Executive Orders and their effect on 
small firms.
    3/24/16. The Committee held a staff briefing featuring 
speakers from the Mercatus Center at George Mason University to 
discuss the new Federal Regulation and State Enterprise Index, 
which uses RegData, a database quantifying federal regulation. 
The briefing examined the level of federal regulation targeting 
each state's specific mix of industries.
    4/5/16. Chairman Chabot and Ranking Member Velazquez sent a 
letter to Denise Turner Roth, Administrator of the General 
Services Administration, expressing concern about the low 
number of small business suppliers to the federal government 
and requesting information on the steps that GSA is taking to 
remove barriers for small contractors who wish to do business 
with GSA.
    4/14/16. The Committee held a hearing examining the burden 
of federal regulations on small businesses and federal 
agencies' compliance with the Regulatory Flexibility Act.
    4/19/16. The Subcommittee on Economic Growth, Tax and 
Capital Access scheduled a hearing on the Treasury Department's 
January 29, 2016, proposed rules affecting companies operating 
closed defined benefit plans. A ``reasonable classification'' 
provision in the regulation would have had a dramatic impact on 
small businesses. Shortly after the hearing was noticed, the 
Treasury Department rescinded the offending provision, and the 
hearing was cancelled.
    4/19/16. Chairman Chabot sent a letter to IRS Commissioner 
John Koskinen including two Questions for the Record in 
conjunction with the 4/13/16 full Committee hearing on small 
business tax simplification and reform. The first question 
specifically focused on the impact of regulations on tax policy 
and the agency's role in ensuring that these regulations are 
not unnecessarily lengthy or cumbersome.
    4/28/16. Chairman Chabot and Republican Members of the 
Committee on Small Business sent a letter to the Office of 
Management and Budget's Office of Information and Regulatory 
Affairs (OIRA) Administrator Howard Shelanski urging OIRA to 
return the Department of Labor's draft final rule on overtime 
pay to DOL for reconsideration.
    5/3/16. Chairman Chabot sent a letter with nineteen other 
House Members to U.S. Secretary of the Treasury Jacob Lew 
inquiring whether the Department is considering regulating 
lending to small businesses and consumers similarly, and 
requesting information on studies the Department has undertaken 
on how small businesses utilize credit.
    5/3/16. Subcommittee on Contracting and Workforce Chairman 
Richard Hanna (R-NY) sent a letter to the United States 
Government Accountability Office asking that he be added as a 
co-requestor to two reviews of the Department of Defense and 
federal contracting that GAO has underway. The first review 
concerns cancelled solicitations, and is a mandatory request of 
the House Armed Services Committee in House Report 114-102. The 
second review concerns the length of time it takes DOD to award 
contracts and the factors that extend the amount of time 
necessary to complete awards. That review was requested by 
House Armed Services Committee Chairman Mac Thornberry.
    5/5/16. The Committee held a Listening Session to examine 
the effects of labor and workforce regulations on small 
businesses and ideas for reducing excessive regulatory burdens 
from trade associations that represent small companies.
    5/16/16. Chairman Chabot, House Energy and Commerce 
Committee Chairman Upton (R-MI) and House Energy Commerce 
Subcommittee on Energy and Power Chairman Ed Whitfield (R-KY) 
sent a letter to Environmental Protection Agency Administrator 
Gina McCarthy expressing concern about EPA's proposed rule on 
``Accidental Release Prevention Requirements: Risk Management 
Programs under the Clean Air Act.'' Specifically, the Chairmen 
requested that EPA extend the 60-day comment period on the 
proposed rule because the rule is lengthy and complex and it is 
uncertain whether EPA has considered comments from small 
entities.
    5/26/16. Chairman Chabot and Committee on Oversight and 
Government Reform Chairman Jason Chaffetz sent a letter to the 
Office of Management and Budget (OMB) requesting information 
related to OMB's overdue Fiscal Year (FY) 2014 report on the 
federal paperwork burden that is required under the Paperwork 
Reduction Act and its plans to publish a FY 2015 report in a 
timely fashion.
    6/9/16. The Subcommittee on Economic Growth, Tax and 
Capital Access Chairman Tim Huelskamp held a hearing to examine 
what effect regulations, particularly banking regulations 
stemming from Dodd-Frank, were having on rural communities.
    6/20/16. Chairman Chabot and Ranking Member Velazquez sent 
a letter to IRS Commissioner John Koskinen expressing concern 
about the IRS' treatment of small architectural and engineering 
firms claiming the Research and Experimentation tax credit.
    6/23/2016. The Committee held a hearing that examined the 
damaging effects of the Department of Labor's finalized 
overtime rule on small businesses, small non-profits, and small 
counties.
    8/25/2016. Chairman Chabot and Ranking Member Velazquez 
sent a letter to Federal Communications Commission (FCC) 
Chairman Tom Wheeler detailing concerns about the negative 
economic impact the FCC's privacy proposals would have on small 
Broadband Internet Access Services (BIAS) providers.
    9/7/16. The Committee held a hearing to examine SBA's 
Historically Underutilized Business Zones (HUBZone) Program. 
Director William Shear of the GAO and A. John Shoraka, 
Associate Administrator of the Office of Government Contracts 
and Business Development for SBA testified regarding challenges 
within the program.
    9/12/16. Chairman Chabot and Committee on Energy and 
Commerce Subcommittee on Energy and Power Vice Chairman Pete 
Olson sent a letter to the Environmental Protection Agency 
(EPA) regarding two rules, one final and one proposed, 
promulgated under the Clean Air Act's Significant New 
Alternatives Policy program that would restrict the use of 
certain refrigerants. Compliance with the rules and potential 
conflicts between the rules and Department of Energy efficiency 
standards pose a significant challenge for small manufacturers 
of affected products.
    9/13/16. Chairman Cresent Hardy of the Subcommittee on 
Oversight, Investigations, and Regulations and Chairman Richard 
Hanna of the Subcommittee on Contracting and Workforce held a 
joint hearing examining the detrimental effects of 15 Executive 
Orders and Presidential Memoranda issued by President Obama has 
had on many federal contractors, including small businesses. 
This hearing will examine how these actions have effected small 
government contractors.
    9/16/16. After learning that the Small Business 
Administration's (SBA) CDC/504 Loan Program has experienced 
outages for roughly one-third of all business days since June, 
Chairman Chabot and Ranking Member Nydia Velazquez sent a 
letter to SBA Administrator Maria Contreras-Sweet seeking 
answers.
    9/20/16. Chairman Chabot and Senate Small Business and 
Entrepreneurship Committee Chairman David Vitter (R-LA) sent a 
letter to United States Health and Human Services Secretary 
Sylvia Matthews Burwell requesting current enrollment figures 
for the Small Business Health Options Program (SHOP) health 
exchange.
    9/21/16. Chairman Chabot became an original cosponsor of 
H.R. 6100, the Protect Family Farms and Businesses Act, 
sponsored by Rep. Warren Davidson (R-OH-8). This bill would 
repeal the August 4, 2016, proposed Treasury Department 
regulations under Internal Revenue Code section 2704 that would 
change the estate and gift tax rules to the detriment of 
family-owned small businesses.
    9/27/2016. The Committee held a hearing on the Federal 
Aviation Administration's final rule to permit commercial 
operations of small unmanned aircraft systems and the 
opportunities for small businesses that will result from 
commercial drone operations.
    10/03/16. Chairman Chabot and Ranking Member Velazquez sent 
a follow-up letter to Federal Communications Commission (FCC) 
Chairman Tom Wheeler seeking a response to their letter of 8/
25/16 on FCC's privacy proposals would have on small Broadband 
Internet Access Services (BIAS) providers.
    10/5/16. Chairman Chabot sent a letter to John Stumpf, 
then-CEO of Wells Fargo, regarding the bank's ``improper sales 
practices'' and how they affected small businesses that may 
have been forced to pay out fees associated with accounts they 
never opened. Wells Fargo is the largest participant in the 
Small Business Administration's (SBA) 7(a) Loan Program and 
serves as a Central Servicing Agent for the SBA's Certified 
Development Company/504 Program.
    10/5/16. Chairman Chabot sent a letter to SBA Administrator 
Maria Contreras-Sweet seeking information on Wells Fargo's 
participation in SBA's lending programs following revelations 
that Wells Fargo had engaged in improper sales practices that 
have affected their customers, including small businesses.
    10/07/16. Chairman Chabot sent a letter to the United 
States Government Accountability Office asking to be added as a 
co-requestor to a review of the current statutory and 
administrative authorities of the Committee on Foreign 
Investment in the United States.
    11/7/16. Chairman Chabot joined 87 members of Congress in 
sending a letter to United States Health and Human Services 
Secretary Sylvia Matthews Burwell regarding the importance of 
successfully implementing the Protecting Access to Medicare Act 
of 2014.
    11/18/16. Chairman Chabot sent a letter to Timothy Sloan, 
CEO of Wells Fargo, as a follow up to Wells Fargo's response to 
the Committee's October 8, 2015 letter. In Wells Fargo's 
response, it admitted that thousands of the deposit and credit 
card accounts harmed by improper sales practices of Wells Fargo 
employees were accounts owned by small businesses. The Chairman 
asked that Wells Fargo continue to keep the Committee apprised 
of developments as it works with a third party to review all 
accounts dating to 2009 in order to identify those that may 
have been affected.
    11/21/16. Chairman Chabot and Ranking Member Velazquez sent 
a letter to SBA Administrator Maria Contreras-Sweet seeking a 
full accounting of outstanding regulations that were required 
by statute. SBA has failed to issue required regulations, in 
some cases for years past the deadline set in statute.
    12/5/16. Chairman Chabot and Committee on Oversight and 
Government Reform Chairman Jason Chaffetz sent a letter to 
Office of Information and Regulatory Affairs Administrator 
Howard Shelanski requesting the Office of Management and Budget 
(OMB) issue overdue annual reports on the federal paperwork 
burden that are required under the Paperwork Reduction Act.
    12/14/16. Chairman Chabot and Ranking Member Velazquez sent 
a letter to SBA Administrator Maria Contreras-Sweet requesting 
a timeline for SBA's elimination of self-certification in the 
Women-Owned Small Business Federal Contracting Program 
(Program) as required by the National Defense Authorization Act 
of 2015. The SBA Office of Inspector General has reported 
instances of potentially ineligible firms receiving federal 
contracts through the Program, and oversight hearings of the 
Committee in the 114th Congress focused on the SBA's management 
challenges within the Program, including the failure to 
eliminate self-certification.